Batik Air Ends Flights from Kuala Lumpur to this Indian spiritual City

dailyblitz.de 4 hours ago

MUMBAI- Batik Air Malaysia (OD) will suspend its Kuala Lumpur (KUL) – Amritsar (ATQ) flights effective August 1, 2025, despite maintaining a strong average load factor above 84%.

The route’s second-highest occupancy among competitors didn’t translate to profitability, highlighting a key industry truth: seat yield, not seat count, drives sustainability in airline networks, Ravreet Singh highlighted.

Batik Air Ends Amritsar Flights

Between November 2024 and May 2025, three airlines actively operated on the Kuala Lumpur (KUL) – Amritsar (ATQ) route: Malaysia Airlines (MH), Batik Air Malaysia (OD), and AirAsia Malaysia (AK). The average Passenger Load Factors (PLF) during this period were:

Malaysia Airlines (MH): 85.79%
Batik Air Malaysia (OD): 84.27%
AirAsia Malaysia (AK): 77.22%

Despite a solid PLF, Batik Air struggled with yields—revenue earned per passenger.

The airline attempted to supplement local traffic with onward connections to cities like Bali (DPS), Jakarta (CGK), and Melbourne (MEL). However, transit passenger uptake was insufficient to justify continued operations.

In August 2024, Malaysia Airlines (MH) increased its frequency on the KUL–ATQ route to daily Boeing 737 operations. Stronger connectivity to Australia and New Zealand, particularly Auckland (AKL), made it a more viable choice for long-haul and connecting travelers. This shift marked the beginning of intensified competition.

Competitive Pressure and Inconsistent Capacity

AirAsia Group responded by adjusting capacity. It replaced AirAsia X’s (D7) wide-body A330s with AirAsia Malaysia’s (AK) narrow-body A321neos, maintaining a 4x weekly schedule. This capacity recalibration helped reduce operational costs while staying competitive.

In contrast, Batik Air’s frequency dropped erratically—from 4x weekly to 3x, and finally 2x weekly before the suspension decision. Meanwhile, fare pressure intensified. Average round-trip base fares remained between USD $180–240, underscoring the route’s price-sensitive nature and low yield potential.

Thai Lion Air’s Ongoing Struggle in Amritsar

While Batik Air exits, another Lion Air Group carrier, Thai Lion Air (SL), continues its 4x weekly operations on the Bangkok (DMK) – Amritsar (ATQ) route. However, the airline faces increasing competition from Air India Express (IX) on the same sector.

From January to May 2025, both carriers recorded nearly identical PLFs between 65–67%. Yet, Air India Express maintains a strategic edge by leveraging cargo capacity to balance yield, an area Thai Lion Air has yet to capitalize on effectively.

Amritsar–Kuala Lumpur Traffic Surge: A Double-Edged Sword

The ATQ–KUL route saw a dramatic post-pandemic recovery:

2019: 87,127 passengers
2023: 45,403 passengers
2024: 168,433 passengers

While 2024 numbers set a new record, the growth was heavily P2P (point-to-point) and fare-driven, indicating shallow revenue streams with limited network value. This raises critical sustainability concerns: as capacity tightens and fares rise, will demand hold?

Bottom Line

Batik Air’s suspension serves as a strategic case study in airline economics. Even with full cabins, the absence of profitable yields, weak transit demand, and pricing pressures made the KUL–ATQ route unsustainable for the carrier.

As other regional players continue to jostle for market share in Amritsar, only those who balance volume with value will endure long-term. The industry lesson remains clear—success lies not in numbers, but in revenue per seat.

Stay tuned with us. Further, follow us on social media for the latest updates.

Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News

IndiGo Kicks Out Air India Express from Amritsar-Hyderabad Route

The post Batik Air Ends Flights from Kuala Lumpur to this Indian Religious City appeared first on Aviation A2Z.

Read Entire Article