The post AirAsia parent firm Capital A releases Q2-2025 financials appeared first on TD (Travel Daily Media) Travel Daily Media.
Capital A Berhad reported its unaudited financial results for the second quarter ended 30th June on Thursday, 28th August
Considering how Q2 is normally considered a seasonally weak quarter, the Group recorded a revenue of RM4.8 billion, RM1.1 billion in EBITDA and Net Operating Profit of RM671 million.
Profit After Tax (PAT) for the quarter was RM1.5 billion, a substantial turnaround from the RM543 million loss after taxes in Q2-2024, boosted by a RM0.9 billion foreign exchange gain.
Highlights from Q2-2025
Aviation revenue dropped by three percent year-on-year (YoY) to RM 4.5 billion, largely due to weaker tourism and safety concerns in Thailand.
Excluding Thailand, revenue would have increased by two percent YoY.
Nevertheless, EBITDA was up 32 percent from a year ago to RM931 million, achieving a 21 percent margin, driven by lower fuel prices, stronger Asean currencies and ongoing cost optimisation.
Likewise, PAT swung to RM884 million from a RM552 million loss in 2Q2024.
Meanwhile, load factor held steady at 82 percent as capacity increased by eight percent YoY, while the number of passengers fell marginally by one percent YoY to 15.5 million due to softness in Thailand
Likewise, average fare declined by four percent YoY to RM229, largely due to Thailand and the change of capacity mix to more domestic.
Ancillary per passenger improved by two percent YoY to RM51, while ancillary revenue grew by three percent YoY, making up 19 percent of aviation revenue.
This was driven by cargo revenue rising 49 percent on improved belly utilisation and better data personalisation
Overall CASK fell eight percent YoY to USc4.50, largely driven by lower fuel prices and returning to a normal maintenance profile
Overall fleet size grew by one aircraft to 226 aircraft, with 206 active aircraft.
The executives weigh in
Group CEO of AirAsia Aviation Group Bo Lingam remarked that the second quarter demonstrated the resilience of Capital A’s aviation business.
Lingam said: “We offset slower demand in Thailand and lower fares from returning capacity with disciplined cost management and strong ancillary growth, supported by favourable fuel and forex trends. Load factor remains high as we bring capacity back online and align supply with market needs. Core short-haul demand held firm, boosted by the summer peak in North Asia, regional festivities and long weekends in Malaysia and other key markets.”
He further expressed confidence that this momentum will carry into the second half, with the fourth quarter historically being the airline business’ strongest.
With regard to AirAsia’s Thai market, Lingam said: “Thailand remains an important market for us, and we intend to hold our market share, especially domestically, at 40 percent through targeted capacity redeployment into domestic and to India, as well as refined pricing strategies. We are expecting Thailand to see a rebound from the fourth quarter onwards.”
For his part, Capital A chief executive Tony Fernandes lauded the company for delivering strong results in what is usually their weakest quarter.
Fernandes enthused: “Aviation’s back on track, and we’re close to returning to our full fleet strength. Add to that, almost all our Capital A Companies are profitable at PAT level, and we have strong earnings potential. Now that we’ve steadied the ship, it’s all about growth.”
The chief executive added that the goal for the next six months is for the company to get all its aircraft back, grow its operations in the Philippines and Indonesia, and return the share of AirAsia on MOVE to 60 percent in order to grow ancillary revenue.
At present, the company is currently working on a rated bond and securing local debt to restructure its COVID-era financing which dragged down its profits.
Fernandes added: “On the aviation disposal, we are on the last leg of restructuring. At the moment, we’re in the process of responding to some feedback from the Thai SEC, and we hope to resolve any outstanding matters soon.”
The post AirAsia parent firm Capital A releases Q2-2025 financials appeared first on Travel Daily Media.
Source: traveldailymedia