KUALA LUMPUR: AirAsia parent Capital A Bhd registered a significant rise of net profit of RM57.09 million for the first quarter of financial year 2023 (1QFY23) that ended March 31, 2023 from a net loss of RM903.79 million.
Capital A's revenue skyrocketed to RM2.53 billion in 1QFY23, a threefold increase from RM811.78 million previously.
In Bursa Malaysia filing, the company said the increase in revenue was prompted by the revival of air travel during the period.
"The increase was mainly attributed to the strong demand from both domestic and international travel, in tandem with the relaxation of travel and entry requirements," it said.
Similarly, Capital A registered an earnings per share of 1.40 sen from a loss per share of 22.30 sen a year ago.
On segmental basis, Capital A reported a revenue of RM2.24 billion for the aviation group, up by 256 per cent compared to the same period last year, on the back of upsurge of domestic and international travel.
In a separate statement, Capital A said the company registered a 22 per cent quarter-on-quarter (q-o-q) growth in the number of international passengers carried, supported by the festive season, credited to robust recovery of international routes.
"Achieved overall load factor of 88 per cent, matching the pre-Covid level posted in the same period of 2019, while the recovery of passengers carried and seat capacity now stands at 68 per cent and 69 per cent of pre,-pandemic metrics respectively.
"With the average revenue per operating aircraft of RM24.7 million, the group will leverage opportunities to capture further revenue and cost upside as it reactivates its remaining 47 aircraft,"it said.
As for Asia Digital Engineering (ADE), the revenue posted at RM103.3 million in 1QFY23, an increase of 84 per cent against the same quarter in previous year.
This is due the surge in demand for aircraft MRO, on the back of the proactive rollout of AirAsia fleet which was uplifted by an increase in travel demand within the Asian region.
"The recent US$100 million funding from OCP Asia Ltd is a testament to ADE's potential, which enables the company to grow its aircraft servicing capabilities by servicing a larger fleet of aircraft, including those operated by third-party airlines by 2024," it said.
For Teleport, the group posted a quarterly revenue of RM152 million, up 3 per cent year-on-year (y-o-y) due to the additions of third party capacity and regional deals with global freight forwarders for cargo segment.
While AirAsia SuperApp's revenue for the quarter was RM158.8 million, a significant 175 per cent, increase against 1QFY22, driven by the strong revival of domestic and international travel demand in most regions.
For BigPay's quarterly revenue of RM11 million which increased by 79 per cent y-o-y, this was supported by the improved take rate from the payment business and increasing traction of the remittance business, which aligns with the ongoing recovery of the travel industry.
The company is taking the opportunity from the reopening of the China market in March 2023 that prompted both AirAsia Malaysia and AirAsia Thailand to prioritise deploying capacity to China to maximise on the pent-up demand.
"We anticipate the high fares to persist. As we reactivate more aircraft, we would be able to remove dead costs and improve the overall financial position,"
Chief executive officer Tan Sri Tony Fernandes said the company was reorganising its businesses into four major verticals within the operations which profitable.
"With the only exception being BigPay which is firmly on its way to being profitable in the near future.
"It is gratifying to see the resurgence of travel drive the recovery and subsequent growth of our aviation business, while uplifting all our other business segments in tandem. This is a testament to the sustainability and long-term viability of the ecosystem we have built," he said.
On the company's practice note 17 (PN17) status, Capital A made the decision to revise the announcement date due to the requirements to incorporate the latest FY2022 audited figure into the plan.
"The process is essential to ensure that our financial results accurately reflect our performance and strategic direction. We appreciate the understanding and patience of all our stakeholders during this adjustment period," he said.
