KUALA LUMPUR: While prospects for the aviation sector remain subdued by travel restrictions, Malaysia Airports Holdings Bhd is growing optimistic over a resumption of airline traffic in the domestic sector given the rapid pace of Covid vaccination in the country.

       In a statement released in conjunction with its recent earnings result, the airport operator said there have been some early signs of cautious cross-border traffic arrangement in other regions of countries.

       It noted instances where vaccinated passengers have been allowed to travel while maintaining some standard safety measures.

       "A mutual and standard travelling protocol, digital health pass, while ensuring safety and comfort of passengers would facilitate the prospect for air connectivity re-start and cross-border travel," it said.

       In preparation for any traffic recovery, runway 1 of KLIA was recently fully rehabilitated and given the full check mark to operate by the Civil Aviation Authority, it added.

       Meanwhile, MAHB continues to implement cost optimisation with measures that include recalibrating operational efficiencies, such as rebasing cost and prioritising capital expenditure to conserve cash reserves.

       As at June 20, 2021, the group had achieved a reduction of 13% of the core operational expenses as compared to the corresponding period in the prior year, it said.

       MAHB's earnings widened in 2QFY21 with a pre-tax loss of RM290.5mil compared to a pre-tax loss of RM268.3mil in the year-ago quarter due to higher depreciation and amortisation, decrease in other income and a marginal increase in operational expenses in the quarter under review.

       There was improvement in revenue in the current quarter to RM323.42mil from RM272.18mil a year earlier due to higher passenger volumes in Turkey against the corresponding quarter's effect of its airport closure in April and May 2020.

       Revenue from Malaysia's operations decreased 43.2% to RM125.8mil.

       However, Turkey's operations contributed higher revenue of RM176.3mil versus RM35.1mil a year earlier and Qatar's operations increase to RM21.3mil from RM15.5mil in the previous corresponding quarter.

       The share of results from associates amounted to losses of RM1.5mil, down from RM2mil in the year-ago quarter.

       Share of results from joint ventures recorded profits of RM4.5mil, as compared to RM300,000 in the comparative quarter.

       Year to date, MAHB has recorded a net loss of RM447.39mil, compared to a net loss of RM111.46mil in the first half of 2020.