Capital A’s revenue more than doubles to RM5.2 billion in 1Q24.: Capital-A-revenue-doubles
1Q24-Capital-A-RM5.2bil

1. Capital A revenue growth
2. RM5.2bil revenue
3. 1Q24 financial performance

Capital A Bhd expects a stabilisation in demand as it progresses into the second quarter of 2024, following its highest-ever quarterly performance in the first quarter. Despite a net loss of RM91.6mil in 1Q24, the aviation group saw its revenue more than double to RM5.2bil, driven by strong recovery in both domestic and international travel. With ongoing aircraft reactivation and plans to launch new international routes, Capital A aims to boost its capacity and capitalize on growing demand. The group also foresees healthy growth for its subsidiaries like CAPAS, Teleport, Move Digital, and AirAsia Cambodia.

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Capital A Bhd, a prominent player in the aviation industry, has forecasted a stabilisation in demand as it moves into the second quarter of 2024. The company recently achieved its highest-ever quarterly performance in the first quarter ended March 31, 2024, showcasing its resilience and ability to adapt in a challenging environment.

In 1Q24, Capital A reported a net loss of RM91.6 million, a significant decline from the profit of RM57 million recorded in 1Q23. This loss per share of 2.20 sen was primarily driven by a foreign exchange loss of RM370.9 million due to currency depreciation against the US dollar. Despite this setback, the company’s revenue more than doubled to RM5.2 billion in 1Q24 from RM2.5 billion in the previous period, reflecting a strong recovery in demand from both domestic and international travel.

With 89% of its revenue attributed to the aviation segment, Capital A highlighted the positive impact of its ongoing aircraft reactivation program. The group is nearing completion of this initiative, with only 19 planes left to be reinstated in the second half of 2024. By the end of the year, Capital A aims to have 202 operational aircraft, enhancing its capacity to meet the growing demand across its expanding network.

Furthermore, the company is set to launch six international routes in the coming quarters to leverage the expected demand growth from the China and India visa-free program. Capital A is committed to intensifying its ancillary offerings, building on the momentum generated by achieving RM878 million in ancillary income in the first quarter of the year.

In a bid to further expand its presence, Capital A recently launched its fifth short-haul airline, AirAsia Cambodia, in May. The airline plans to scale up its operations to three aircraft this year, contributing to the company’s overall growth strategy. Additionally, Capital A is optimistic about the prospects of its subsidiaries such as Capital A Aviation Services (CAPAS), Teleport, Move Digital, and Capital A International, projecting healthy growth for these entities in the near future.

As the aviation industry continues to navigate through the challenges posed by the global pandemic, Capital A remains focused on innovation, growth, and sustainability. The company’s strategic initiatives and strong performance in the first quarter of 2024 demonstrate its resilience and commitment to delivering value to its stakeholders.

In conclusion, Capital A’s revenue more than doubling to RM5.2 billion in 1Q24 is a testament to the company’s ability to adapt and thrive in a dynamic market environment. With a clear focus on expanding its operations, launching new routes, and enhancing ancillary services, Capital A is well-positioned to capitalize on emerging opportunities and drive sustainable growth in the aviation sector.