Malaysia Airlines Sees 40 percent Corporate Travel Growth in India

Malaysia Airlines is seeing a sharp rise in corporate travel demand from India, with bookings increasing by 40 percent year-on-year. The airline is open to new partnerships to tap this growing market.  However, bilateral traffic rights continue to limit its plans to expand flights between India and Malaysia.

The Southeast Asian carrier also reported a 24 percent increase in visiting friends and relatives (VFR) traffic. Leisure travel is growing, too, highlighting India's importance to the airline's network. Malaysia Airlines Group President and CEO Nasaruddin A Bakar said partnerships could help the carrier expand its reach, provided they benefit both parties.

Corporate Travel Growth Drives India Market Demand

India has become a strong market for Malaysia Airlines, which recorded 13 percent year-on-year passenger growth in the first half of 2026. The country accounted for nearly 10 percent of the airline's total passenger traffic of around 10.6 million during the period.

The carrier transported approximately one million passengers between India and Malaysia, with around 500,000 traveling in each direction, Bakar told PTI.

The airline is seeing rising demand across several travel segments. These include corporate and premium travel, leisure trips, and visits to family and friends.

Key figures highlight the market's growth:

• 40 percent growth: Corporate travel demand from India.
• 24 percent growth: VFR traffic compared with the previous year.
• 13 percent growth: Overall passenger demand in the first half of 2026.
• 91 percent load factor: Average occupancy across Malaysia Airlines' India network.
• 80 weekly flights: Current services operated between India and Malaysia.

The airline currently serves 10 destinations in India. It is also exploring additional frequencies and flight slots to meet growing demand.

Bakar said stronger relations between India and Malaysia were supporting passenger traffic. However, the airline believes it could achieve further growth if it secures additional traffic rights and slots.

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Partnerships and Fuel Costs Shape Expansion Plans

Malaysia Airlines considers partnerships a key part of its Long-Term Business Plan (LTBP), which entered its third phase in 2026. The airline already has a strategic codeshare partnership with IndiGo, allowing it to connect passengers to six additional Indian destinations, including Goa.

The arrangement also helps Malaysia Airlines improve connectivity through its Kuala Lumpur hub. Through codeshare and interline agreements with airlines worldwide, passengers can access more than 1,000 destinations.

Bakar said partnerships need not be limited to airlines. The carrier is also open to working with companies in maintenance, repair and overhaul (MRO), technology, digital services, and sports. Malaysia Airlines is the official global airline partner and an associate sponsor of the Mumbai Indians.

Meanwhile, higher fuel expenses have added pressure to the airline's operations. The Gulf war has pushed fuel's share of total operating costs from 40 percent to 55 percent, prompting several measures to manage the impact.

These include:

• Cutting capacity by 5 percent.
• Increasing airfares by 20 percent.
• Hedging 36 percent of its fuel requirements for 2026.

Despite these challenges, Malaysia Airlines is looking to strengthen its position in India. Its next phase of growth will depend partly on its ability to secure more flight frequencies and slots while expanding partnerships that improve connectivity and passenger access.