Malaysia Airlines says travel demand to stay weak until 2023

[KUALA LUMPUR] Malaysia Airlines Bhd said air travel demand will remain subdued and it expects a full recovery after the end of 2023, amid a resurgence of Covid cases in many countries.

The national flag carrier has cut more than 1,500 jobs and plans to reduce capacity further as part of the restructuring it began in October, Chief Executive Officer Izham Ismail said in a briefing on Tuesday. The airline aims to transform into a global travel group as "pure play" airline is not sustainable, Mr Izham said . The aviation industry may consolidate as airlines globally contend with travel curbs and targeted lockdowns to combat new waves of Covid infections.

Malaysia Airlines aims to have 83 aircraft in total by 2025, and the Group looks to break even in 2023, Mr Izham said.

BLOOMBERG