Capital A Q1 2025 shows strong recovery, growth

Capital A, the parent company of AirAsia, reported 5.3 billion ringgit (US$1.2 billion) in revenue and a profit after tax (PAT) of 194 million ringgit (US$45.6 million) for the first quarter of 2025.

This is a recovery from a 244 million ringgit (US$57.3 million) loss in the same period last year.

The aviation segment contributed 4.9 billion ringgit (US$1.2 billion) in revenue with a net operating profit of 241 million ringgit (US$56.6 million).

Passenger numbers rose 5% year-on-year to 16.2 million, while average fares dropped 9% to 241 ringgit (US$56.6).

The fleet size increased by one aircraft to 225, with 207 active planes. Ancillary revenue per passenger improved by 5% to 60 ringgit (US$14.1).

Capital A’s leadership highlighted ongoing restructuring efforts and plans for future growth.

These include possible dual listings on the Hong Kong Stock Exchange and Nasdaq for various subsidiaries. The group stated it is on track to meet its internal targets for fiscal year 2025.

🔗 Source: Capital A

🧠 Food for thought

1️⃣ Capital A’s profit turnaround mirrors broader airline industry recovery trend

Capital A’s return to profitability (RM194 million PAT) aligns with IATA’s forecast of strengthening airline profits industry-wide for 2025.

The global airline industry is projected to achieve net profits of $36 billion in 2025, up from $32.4 billion in 2024, with an improved net profit margin of 3.7% 1.

This recovery comes despite Capital A facing operational challenges with 15 aircraft on ground, reflecting industry-wide issues where companies must navigate supply chain disruptions while meeting growing demand.

The company’s 4% profit margin is comparable to the global airline industry’s projected 3.7% margin for 2025, suggesting Capital A is performing in line with international trends 2.

A key driver for both Capital A and the broader market is reduced fuel costs, with Capital A reporting an 11% drop in fuel expenses while IATA forecasts jet fuel prices averaging $86 per barrel in 2025, down from $99 in 2024 1.