SEPANG, June 28 – Capital A Berhad (“Capital A” or the “Group”) has unveiled its unaudited financial results for the first quarter ended March 31, 2023 (“1Q2023”), highlighting a profitable start to the year and the growth of a low-cost, value-driven aviation and travel services group. With robust performance across all four companies – Aviation, Aviation Services, Digital, and Logistics – Capital A reported a Profit After Tax of RM26 million, accompanied by a remarkable 212% year-on-year revenue growth to RM2.5 billion.
This achievement signifies a significant milestone as the Group achieved positive EBITDA of RM502 million, comparable to pre-pandemic levels. The Group’s aviation segment showcased a resurgence driven by increased international travel, resulting in a segmental revenue of RM2.2 billion and an EBITDA of RM501 million. The recovery of international routes was evident, with a 22% quarter-on-quarter growth in the number of international passengers carried, particularly during the festive season.
Notably, the average fare increased by 60% year-on-year to RM210, surpassing pre-Covid levels, while ancillary revenue per passenger reached RM48, reflecting a 65% year-on-year growth. This led to a 34% increase in Revenue per Available Seat Kilometer (RASK) to USc 4.51. Additionally, the Group achieved significant improvements in Cost per Available Seat Kilometer (CASK) and CASK ex-fuel, which stood at USc 4.49 (down 43% year-on-year) and USc 2.54 (down 57% year-on-year) respectively, showcasing cost efficiency.
Capital A’s engineering and maintenance subsidiary, ADE, also performed exceptionally well, posting segmental revenue of RM103 million, representing an 84% year-on-year increase. ADE’s success can be attributed to the growing demand for aircraft MRO (maintenance, repair, and overhaul) services, driven by the proactive reactivation of AirAsia’s fleet and increased travel demand within the ASEAN region. Teleport, the Group’s logistics arm, recorded a quarterly revenue of RM152 million, marking a 3% year-on-year growth.
Notably, the e-commerce segment experienced significant growth, with daily deliveries reaching an impressive average of 63,000, reflecting a 502% year-on-year increase. Teleport’s market share in the intra-SEA cargo market also reached a record high of 14% in March 2023, compared to just 2% in January 2022. The airasia Superapp, operating within the Group’s digital vertical, achieved historic revenue and EBITDA figures since its inception, reaching RM159 million and RM24.4 million respectively in the first quarter.
The growth in its travel and delivery verticals, along with a prudent cost management strategy, contributed to this remarkable performance. The platform’s Monthly Active Users (MAU) grew by 12% quarter-on-quarter, reaching 12.9 million in 1Q2023. BigPay, the Group’s fintech portfolio company, demonstrated notable progress with a quarterly revenue of RM11 million, reflecting a 79% year-on-year improvement. The increasing traction of its payment and remittance businesses, in collaboration with airasia Superapp, played a significant role in narrowing the EBITDA loss by 13% year-on-year to RM28 million (USD6.3 million).
CEO of Capital A, Tan Sri Tony Fernandes, expressed his optimism for the Group’s future and highlighted the strong performance across all business segments. He emphasized the strategic advantage of the Group’s travel and lifestyle ecosystem, which facilitated growth and synergies within a rapidly evolving business landscape. Fernandes acknowledged the positive outlook for the aviation services business, including ADE, Santan (inflight catering), Ground Team Red (ground-handling), AirAsia Consulting, and AirAsia Shared Services, which are poised to become the best-value, lowest-cost service providers for third-party airlines.
Furthermore, Fernandes emphasized the pivotal role of the airasia Superapp in becoming the leading travel superapp in ASEAN. The collaboration between BigPay and airasia Superapp yielded favorable results, with potential for further commercial synergies. The Group’s focus on increasing aircraft capacity and the imminent arrival of the first A321 freighter would enhance Teleport’s network connectivity and e-commerce delivery capabilities.
Regarding the Group’s Practice Note 17 (“PN17”) status, Fernandes revealed a revised announcement date to incorporate the latest audited figures and ensure accurate reflection of the Group’s performance and strategic direction. He expressed confidence in the positive returns from the investment in AirAsia X, as the company’s shareholder equity returned to positive, driven by exponential growth and strong operating performance during the recovery phase.
Capital A’s Q1 results demonstrate the successful execution of its growth strategy and the emergence of a low-cost, value-driven aviation and travel services group. The Group’s strong performance in the aviation segment, coupled with the growth of its digital, logistics, and aviation services verticals, positions Capital A for further expansion and success in the future.