Capital A’s quarterly net profit rises above RM1 bil for first time in over five years

Capital A Berhad, an investment holding company, provides air transportation services in Malaysia, Indonesia, the Philippines, and internationally under the AirAsia brand. Along with that it also offers engineering, tour operating, aircraft leasing, shared and outsourcing, event ticketing, and consultancy services. The company was formerly known as AirAsia Group Berhad and changed its name to Capital A Berhad in January 2022. Capital A Berhad was founded in 2001 and is headquartered in Kuala Lumpur, Malaysia.

In January, 2023, it was stated that AirAsia will now be killing its other operations in the superapp to focus on what Tony Fernandes, CEO of AirAsia parent company Capital A, calls its bread and butter — travel.

Capital A Bhd posted a net profit of RM1.12 billion for the second quarter ended June 30, 2023 (2QFY2023), compared with a net loss of RM931.22 million a year earlier, owing to the strong recovery in demand from both domestic and international travel. Last time Capital A achieved over RM1 Boillion was in 2018Q1, post covid situation. This is in line with the improvement in overall performance of its aviation segment. 

 Their association to subsidiary, Asia Aviation Public Company Ltd Group (AAV) gaining 1.37 billion is a key factor in this quarterly growth rate. Also the lower foreign exchange loss of RM158.6 million, versus RM345.4 million in 2QFY2022 made a good contribution towards achieving the milestone.

Moving forward they anticipate further upside from the current high yield environment. “With all of the strategies put in place, the board expects the group to perform better than the previous year,” it added. Shares in Capital A closed 7.5 sen or 7.28% lower at 95.5 sen, giving the group a market capitalisation of RM4.02 billion.

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