1-3-2024 (KUALA LUMPUR) Capital A, the parent company of budget airline AirAsia, announced its first full-year profit since the onset of the COVID-19 pandemic, attributing the turnaround to robust travel and freight demand. The company reported a net profit of 507.6 million ringgit for the year ending in December, marking a significant recovery from the 3.3 billion ringgit loss incurred in the previous year.
The impressive financial performance was driven by a 129% year-on-year surge in revenue, reaching 14.8 billion ringgit in 2023. Notably, this figure is 25% higher than the pre-pandemic level recorded in 2019, even though the company operated with only 80% of its pre-pandemic fleet capacity.
Tony Fernandes, Chief Executive of Capital A and co-founder of AirAsia, credited the diversified business model for the group’s resilience. Fernandes stated that the company has emerged “stronger and more resilient than ever.”
Bo Lingam, CEO of AirAsia Aviation Group, expressed optimism for 2024 and set a target to achieve 90% of pre-pandemic capacity for AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia, and AirAsia Philippines.
Lingam outlined plans to strengthen capacity on routes to China and India while emphasizing high-yield routes. In 2023, AirAsia Aviation Group achieved a passenger load of 88%, recording nearly 57 million passengers, reaching 77% of the pre-pandemic level. Revenue for the year surged 143% to 13.5 billion ringgit compared to 2022.
Teleport, Capital A’s logistics subsidiary, reported a 56% year-on-year increase in revenue, reaching 730.9 million ringgit. This growth was driven by a 275% annual rise in the volume of e-commerce parcels delivered and an 88% increase in cargo volume in 2023.
Fernandes outlined five key strategic focus areas for the year, including optimizing asset utilization, achieving financial sustainability, fostering a culture of high performance, delivering quality products, and leveraging artificial intelligence technologies.
Despite Malaysia’s stock exchange categorizing Capital A as a company facing financial difficulties since January 2022, the recent positive financial results reflect a significant step towards recovery. Additionally, Capital A International, a subsidiary, announced plans to list on the Nasdaq Index after merging with U.S.-based Aetherium Acquisition Corp. at an estimated enterprise value of $1.15 billion.
