Capital A Berhad (Capital A) has announced impressive financial results for the third quarter of 2024 (3Q2024), showcasing strong revenue growth and operational improvements across its business segments. For the period ending 30 September 2024, the Group reported a net profit of RM2.01 billion, boosted by a significant foreign exchange gain of over RM2 billion. Excluding non-recurring items, Capital A achieved a core net operating profit of RM9.9 million, supported by RM4.9 billion in revenue and an EBITDA of RM640 million, reflecting year-on-year (YoY) growth of 17% and 43%, respectively.
Aviation Group: Strong Recovery and Strategic Growth
Capital A’s airline operations recorded RM4.5 billion in revenue, up 15% YoY, with an EBITDA of RM577 million, a 50% YoY surge. Despite a seasonally slow quarter, a robust 90% load factor and increased fares contributed to the strong performance. Ancillary revenue rose to RM52 per passenger, generating RM824 million. The Aviation Group’s fleet expanded to 221 aircraft, with 181 active, and plans to fully reactivate the remaining fleet by the end of 2024. CEO Bo Lingam announced the addition of five (05) A321neo aircraft and the launch of 18 new routes to meet growing travel demand.
Non-Aviation Businesses Shine
Capital A’s other ventures also showed promising growth, collectively generating RM771 million in revenue, up 19% YoY.
- Teleport, the logistics arm, delivered a 52% YoY revenue increase to RM287 million, driven by e-commerce parcel growth. CEO Pete Chareonwongsak highlighted ongoing network expansions and partnerships with new freight operators to close the year on a high note.
- Asia Digital Engineering (ADE) posted RM184 million in revenue, a 12% YoY rise, as expanded maintenance capacity and strategic partnerships boosted its operations.
- Santan, under Capital A Aviation Services (CAPAS), recorded a 20% YoY revenue increase to RM50 million, driven by inflight sales and retail partnerships.
- AirAsia MOVE, the Group’s digital travel platform, generated RM128 million in revenue despite a temporary decline in ticket sales. The segment achieved a 65% YoY EBITDA growth through cost optimization and new initiatives aimed at increasing its booking share.
CEO’s Outlook
Capital A CEO Tan Sri Tony Fernandes expressed optimism about the future, citing strong fourth-quarter prospects driven by peak travel season and expanded operational capacity. The company also aims to exit PN17 status, with plans to finalize its aviation business restructuring by January 2025.
“We are thrilled to announce a significant milestone in our journey to emerge from PN17 status. Having secured the shareholder approval for the disposal of our aviation business, we are on track to complete this transaction by January 2025. Concurrently, we are actively working on submitting and securing approval for our regularisation plan, which is now simplified. Looking ahead, we anticipate a strong fourth quarter. Our aviation business will be driven by peak travel season and increased capacity. ADE will capture growing MRO demand through the expanded hangar capacity, while Santan’s entry into the third-party airline catering market will further boost our revenue. Separately, Teleport’s robust performance, driven by increased volume and operational efficiencies, is expected to continue. The successful resolution of freighter capacity issues and the expansion of our network will further strengthen our position in the logistics market,” Fernandes said.
Capital A’s diversified portfolio and strategic initiatives position it for continued recovery and expansion, capitalizing on the global travel rebound and increasing demand for its services.