Capital A Berhad reported robust financial results for the third quarter of 2024, posting a net profit of RM2.01 billion driven by significant foreign exchange gains and strong performance across its diverse business segments.
The Aviation Group delivered impressive results despite being a traditionally slow quarter. Revenue increased 15% year-on-year to RM4.5 billion, with earnings before interest, taxes, depreciation, and amortization (EBITDA) surging 50% to RM577 million. The group maintained a healthy load factor of approximately 90% and increased average fares by 7% to RM231.
Ancillary revenue continued to be a key growth driver, reaching RM824 million with RM52 generated per passenger. The company plans to expand its fleet to 205 aircraft by year-end and launch 18 new routes targeting markets in China and India.
Non-aviation companies also demonstrated strong performance. Teleport saw a 52% year-on-year revenue increase, delivering over 15.7 million parcels in the quarter. Asia Digital Engineering (ADE) reported a 12% revenue growth, with plans to expand maintenance capabilities and launch an aircraft engineering training center.
Meanwhile, Capital A Aviation Services (CAPAS) generated RM105 million in revenue, with Santan’s inflight sales showing significant growth.
AirAsia MOVE, which serves as the airline’s primary platform for ticket sales, reported RM128 million in revenue, with strategic plans to increase booking share.
A significant milestone was the shareholders’ approval of the aviation business disposal, with a 99.97% approval rate. CEO Tan Sri Tony Fernandes noted the company is on track to complete the transaction 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,” he said.
Looking ahead, Capital A anticipates a strong fourth quarter, with strategic focus on expanding service offerings, optimizing operational efficiencies, and creating value for shareholders.
“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,” he added.
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