Malaysia seeks cheaper Sabah and Sarawak flights as domestic tourism gathers pace

Lower fares could bring East Malaysia closer

Malaysia is working with airlines to reduce domestic airfares, particularly on routes to Sabah and Sarawak, as the country prepares for Visit Malaysia 2026. The effort comes after domestic travel reached 260.1 million trips and RM106.7 billion in spending in 2024. Another 69.7 million trips were recorded in the first quarter of 2025, an increase of 18.9 percent from a year earlier.

As of November 2, 2025, no starting date or specific fare reduction had been given for the collaboration. Its purpose is to make travel more affordable and turn growing interest in holidays within Malaysia into lasting business for destinations, accommodation providers and local communities.

Sabah and Sarawak have a particular stake in the outcome. The South China Sea separates them from Peninsular Malaysia, making flying the only practical choice for most travelers crossing between the two regions. Ticket prices can decide whether a family reunion, a student visit home, a short holiday or a business meeting goes ahead.

School holidays and major festivals place the greatest pressure on household budgets because many people want to travel at the same time. Lower fares and more predictable prices could help families plan, while giving small businesses more affordable access to customers and partners across the country.

The push also extends beyond airports. In Penang, Karnival Cuti Cuti Malaysia brings together 54 exhibitors with travel deals, cultural performances, heritage food and crafts. The event connects the national campaign for more domestic travel with the practical task of helping people choose and afford their next trip.

What cheaper flights could mean for Sabah and Sarawak

Kota Kinabalu, Kuching, Miri, Sibu, Sandakan and Tawau could attract a wider pool of domestic visitors if tickets become more affordable. These cities provide access to destinations ranging from the marine parks around Semporna to rainforest adventures near Mulu, wildlife along the Kinabatangan River and the living heritage of Kuching.

Local spending would reach more than airlines and large hotels. Visitors also pay guides, boat operators, food vendors, craft makers and homestay owners. More arrivals could therefore carry tourism income beyond city centers and into communities whose businesses depend on visitors reaching them.

Students and workers would benefit for a different reason: affordable flights make it easier to maintain family relationships across long distances. For someone living or studying on the opposite side of the South China Sea, a cheaper ticket can make a visit home possible without taking such a large share of their budget.

Kaamatan and Gawai are especially important travel periods for East Malaysians returning home. Demand rises sharply around these celebrations, and fares often rise with it. Collaborations that add flights and hold down prices during busy periods could keep reunions within reach.

Airlines also need passengers on quieter days. A steadier pattern of prices throughout the year could encourage people with flexible schedules to travel outside school holidays, helping fill seats when demand is weaker while giving travelers more confidence to plan.

Malaysia's cultural diversity gives those journeys a value beyond holiday spending. More affordable travel could help school groups visit cultural sites, encourage food tours built around local specialties and let more people experience the nature, culture and enterprise of East Malaysia directly. Such visits can strengthen connections between states and make distant communities feel more familiar.

AirAsia puts domestic promotions on its app

AirAsia has been using digital sales to promote cheaper domestic tickets and direct demand toward particular travel windows. Its MOVE app has advertised exclusive low fares for routes including Kota Kinabalu, Kuching, Sandakan, Penang and Langkawi, with travel periods extending across many months.

Packages can combine flights with hotels, airport rides, insurance and loyalty points. For travelers watching their spending, the value depends on the total package price and whether they need everything included. These campaigns support the wider goal of encouraging more Malaysians to travel within the country.

AirAsia, in a company statement explaining its domestic sales strategy, said recurring promotions would continue through its app:

AirAsia MOVE is AirAsia's exclusive platform offering the lowest fares for its domestic flights in Malaysia. More monthly campaigns featuring exclusive low AirAsia fares will be available as AirAsia MOVE continues to deliver the best value for money deals.

Direct app sales can reduce distribution costs, meaning the expense of selling tickets through other channels. Airlines can use those savings to release a limited number of seats at very low prices, while monitoring how quickly customers book and adjusting their sales campaigns as demand changes.

The cheapest seats can disappear quickly. Promotional fares may also carry restrictions on changes or include little baggage. Frequent travelers can use these sales alongside loyalty points, vouchers and seasonal promotions, but the advertised ticket price is only one part of the purchase.

Other carriers add choices for domestic travelers

Malaysia Airlines offers domestic fare categories called Basic, Value and Flex, allowing customers to choose between different prices and conditions. Its Enrich loyalty program also allows points to be redeemed for short flights with comparatively few points when suitable seats are available.

Firefly continues to expand its regional network, adding options for travelers who are sensitive to price. A wider choice of services can strengthen competition and give passengers more ways to match a journey to their budget and schedule.

Competition, together with occasional government support for flights during peak seasons, can help keep average fares in check without compromising safety or service. The practical benefit for passengers depends on which routes are served, when flights operate and how much the complete journey costs.

Travelers comparing carriers should therefore look beyond the first price shown. A cheaper base fare can become less attractive after baggage, seat selection and other extras are added. A ticket with more included may suit one passenger, while someone traveling light may save more with a basic fare.

Why the same journey can cost much more later

The number of days between booking and departure is the biggest driver of what passengers pay. Airlines usually offer cheaper seats early to build a base of confirmed bookings and learn how much demand there is for a particular flight.

Seats bought close to departure can cost several times more, especially around Hari Raya, Chinese New Year, Gawai and school holidays. Many passengers need the same dates, while the number of available seats is limited. As those seats sell, the remaining tickets can become more expensive.

Weekends generally carry a modest premium, while the time of day has a smaller effect on most routes. For travelers with flexible plans, moving a journey away from the busiest dates may matter more than choosing a different departure hour.

Airline business models also affect prices. Airlines operating at low cost keep their base fares low and charge separately for items such as checked baggage, selected seats and food. Airlines providing a fuller service include more in the ticket, which adds to its price.

Distance creates another difference. Longer domestic journeys to East Malaysia require more flying time, fuel and crew resources than shorter trips such as Kuala Lumpur to Penang or Langkawi. Those costs raise the minimum fare an airline can sustainably offer.

Currency movements and jet fuel prices also feed into ticket costs. Airlines must cover operating expenses while deciding how many cheaper seats they can sell, so strong passenger demand alone does not guarantee lower prices.

What government action can change

Government cooperation with airlines can focus on adding seats when demand is strongest. Extra flights during festivals and school holidays would give more people a chance to travel and reduce some of the pressure created when many passengers compete for a small number of seats.

Targeted support can also soften temporary price spikes. Better coordination of airport slots at Kuala Lumpur International Airport and Subang could help airlines arrange services. A slot is the scheduled opportunity for an aircraft to use an airport for arrival or departure.

Other possible measures include relief from fees, incentives for flights during quieter periods and joint marketing of routes. Publishing schedules early and communicating travel calendars clearly would give families more time to book before the most popular flights fill up.

Lasting affordability depends on enough seats being available at useful times, alongside prices that allow airlines to keep operating. Broad price controls can reduce services or frequencies if carriers cannot cover their costs. More capacity and better timing are central to making lower fares sustainable.

Peak season support and promotions serve different purposes. Support can address the pressure surrounding a festival or holiday, while sales can encourage people to travel in less popular periods. Together, they can help spread demand more evenly across the calendar.

Regional travel patterns offer a useful comparison

Across Southeast Asia, travelers watching their budgets are increasingly choosing short breaks. Demand is particularly strong for trips from Friday to Sunday and softer during the middle of the week. Hotel managers describe busy lobbies on weekends followed by quieter weekdays.

Higher airfares can encourage people to wait for weekend deals or choose a road trip when weekday promotions become less available. Malaysia's effort to make flying more affordable therefore sits alongside a wider challenge: getting people to travel beyond the busiest days and most familiar destinations.

Thailand has introduced a program providing free domestic return flights to a set number of incoming tourists traveling to secondary cities. Major airlines are participating, and the program has a fixed budget.

The Thai approach aims to move visitors beyond the usual hotspots, ease congestion and direct spending toward local economies outside the main gateways. It illustrates how a targeted incentive can influence where people travel without requiring a permanent subsidy.

Malaysia's domestic airfare effort has a different audience, including residents traveling between Peninsular Malaysia, Sabah and Sarawak. Both approaches connect transport affordability with the goal of distributing tourism spending more widely.

How travelers can reduce costs now

Travelers do not need to wait for the government collaboration to produce new fares before comparing their options. Booking early remains the strongest practical step, particularly for journeys to East Malaysia during school holidays or major celebrations.

Dates, baggage needs, airport transfers and ticket conditions all affect the final bill. A useful comparison starts with the whole journey, including the cost of reaching the airport and any extras needed on the flight.

• Book 60 to 90 days before departure for the best chance of finding lower prices, especially on East Malaysia routes.
• Consider departures from Tuesday to Thursday, since weekends often carry a small premium.
• Compare airlines offering basic fares with those including more services, adding baggage and seat charges where needed. Traveling light can reduce costs.
• Set price alerts on major travel apps to receive notifications when fares fall.
• Consider alternative airports, including Subang for certain domestic services, while weighing transfer time against any saving.
• Check school holidays and the dates of Hari Raya, Chinese New Year, Gawai and Kaamatan. Book early when travel on busy dates is unavoidable.
• Compare packages combining flights and hotels with the cost of buying each separately.
• Check whether Enrich or AirAsia Rewards points can reduce the cash needed for short routes when redemption seats are available.
• Watch for exclusive app promotions and promotional codes, since the number of discounted seats is limited.

Fare conditions deserve as much attention as the headline price. Many promotional tickets cannot be refunded, require fees for changes or limit baggage. Reading those conditions before paying helps prevent extra costs at the airport and protects the saving made when booking.

Penang carnival brings deals and culture together

The Penang edition of Karnival Cuti Cuti Malaysia is the fourth stop in the series, following events in Pahang, the Klang Valley and Sarawak. Its 54 exhibitors include travel agencies, hotels, resorts, theme parks, tourist attractions, homestays and destination specialists.

Visitors can explore domestic travel promotions available at the event, sample heritage cuisines, watch cultural performances, enjoy music and shop for artisanal crafts. The combination makes the carnival both a place to compare trips and a showcase for the experiences those trips can offer.

Free admission makes the event accessible to families, students and seniors seeking to stretch their ringgit. Promotions available only at the show give bargain hunters another reason to compare options in person.

The carnival also encourages Malaysians to consider places they know less well, plan short breaks and arrange travel around the school year. Ahead of Visit Malaysia 2026, it links holiday planning with the wider effort to encourage people to explore more of their own country.

Costs and capacity will shape the result

Airlines face several pressures that could limit how far fares fall. Jet fuel costs and a strong dollar affect spending on aircraft leases and maintenance. Uneven aircraft deliveries in parts of the industry can also restrict the number of flights available during the busiest months.

Weather, staffing and airport constraints can affect punctuality. Affordable tickets need to be matched by reliable operations if passengers are to use flights confidently for family visits, holidays and business.

The clearest measures of progress will be the number of extra seats on East Malaysia routes, average domestic fares by route and the balance between weekday and weekend travel. Visitor spending in rural districts will help show whether greater access is benefiting communities beyond the main cities.

Transparent updates on those measures would make it easier to judge whether cheaper travel is expanding access and strengthening local economies. Malaysia already has strong domestic demand. The task is to connect that demand with affordable seats, dependable services and spending that reaches more destinations.

The Bottom Line

• Malaysia is working with airlines to lower domestic fares, with particular attention to Sabah and Sarawak ahead of Visit Malaysia 2026.
• Domestic tourism recorded 260.1 million trips and RM106.7 billion in spending in 2024. The first quarter of 2025 brought 69.7 million trips, up 18.9 percent.
• AirAsia is promoting exclusive domestic fares through MOVE, while Malaysia Airlines and Firefly provide other fare, loyalty and network options.
• More affordable flights could support family travel, cultural exchanges and tourism businesses beyond major cities.
• Early booking, flexible weekday departures and comparisons of complete ticket costs remain practical ways to save.
• Penang's Karnival Cuti Cuti Malaysia features 54 exhibitors, free admission, cultural activities and promotions available at the event.
• Fuel prices, currency movements, aircraft availability and peak demand will influence how far fares can fall.