KUALA LUMPUR, April 14 — The government is introducing a package of financial measures to support the aviation industry as it seeks to cushion the impact of ongoing geopolitical disruptions in the Middle East.

Transport Minister Anthony Loke said the initiatives include festive travel rebates for passengers and financial relief for airlines and are aimed at maintaining air connectivity while supporting both airlines and travellers facing a challenging operating environment.

“At one point, around 75 per cent of daily flights to the region were cancelled, raising concerns about tourism confidence and potential economic losses that could range between RM15 billion and RM150 billion this year.

“To stabilise the sector, the Civil Aviation Authority of Malaysia will extend payment terms for aviation-related charges to 60 days starting May 1.

“A RM50 flight rebate will also be offered to Malaysians travelling between peninsular Malaysia and East Malaysia during the Gawai and Kaamatan festive period, benefiting an estimated 100,000 passengers,” he added.

The Civil Aviation Authority has allocated RM5 million for the initiative, which is expected to benefit about 100,000 passengers travelling between May 15 and June 14.

Loke said the measures were agreed following engagement sessions between the Transport Ministry and industry stakeholders to ease financial pressure while ensuring continued service availability.

“The government will continue to work closely with industry players to ensure the aviation sector remains resilient and responsive,” he said.