Airlines can’t cut ticket prices without subsidies, say experts

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Bringing air ticket prices down to pre-MCO levels will only add problems for the aviation industry, say two experts.PETALING JAYA: Two transport experts have poured cold water on Putrajaya’s call for airlines to reduce ticket prices to the levels before the movement control order shutdown, saying it could not be achieved without government subsidies. Roger Teoh, who holds a doctorate in aviation and the environment, said such a reduction was not possible given the business model of the airline industry. He said airlines typically require their aircraft to be at least 80% full to make a profit, noting that Malaysia Airlines recorded a 78% load factor, yet suffered a net loss of RM791.7 million in 2018. AirAsia also incurred a net loss of RM283 million in 2019 despite an 82% load factor. “Lower airfares will mean airlines have to operate at a significantly higher load factor just t…