Latest news with #CapitalABhd
New Straits Times
2 days ago
- Business
- New Straits Times
Capital A's earnings beat expectations, 2025-2027 forecasts upgraded
KUALA LUMPUR: Capital A Bhd's earnings surpassed Maybank Investment Bank Bhd's (Maybank IB) expectations, driven by stronger-than-anticipated ancillary income, led by baggage fees. As a result, Maybank IB revised its core earnings forecasts for financial years 2025, 2026 and 2027 upwards by 43 per cent, 27 per cent and 27 per cent respectively. Capital A reported a core net profit of RM116.8 million for the first quarter of 2025 (1Q25), covering both aviation and non-aviation segments, which made up 33 per cent of Maybank IB's full-year estimate. Maybank IB said the better-than-expected performance was mainly due to ancillary revenue reaching RM60 per passenger in 1Q25, RM3 higher than initially projected. "Extrapolated over the 16.2 million passengers carried in 1Q25, we estimated that this had a RM30 million to RM40 million positive impact on core earnings. "Focusing on non-aviation, it recorded 1Q25 core net profit of RM37.7 million which was within our expectations at 23 per cent of our financial year estimate," it added. Maybank IB expects stronger earnings for Capital A, supported by a weaker US dollar, with every 1 per cent drop potentially adding around US$2 million (or RM8 million to RM9 million) to pre-tax earnings. Additionally, lower jet fuel prices, with each US$1 per barrel decrease, could contribute approximately US$15.6 million (or RM66.4 million). The firm said Capital A's earnings are also expected to benefit from the return to service of the remaining 9 per cent of its fleet by the third quarter of 2025. The company is aiming to have its practice note 17 (PN17) status lifted by September 2025. Additionally, it is considering a dual listing in Hong Kong and plans to list its Brand AA in the United States.
The Star
3 days ago
- Business
- The Star
Capital A maintains positive outlook for 2025
Capital A CEO Tan Sri Tony Fernandes KUALA LUMPUR: Capital A Bhd remains optimistic about its 2025 prospects and is committed to delivering strong operational and financial performance to ensure sustainable returns for shareholders. Chief executive officer Tan Sri Tony Fernandes said the group is in the final stretch of its restructuring journey and is not just surviving but charging ahead. 'The High Court has approved our capital reduction, shareholders have backed it unanimously, we are confident to say the tunnel is behind us. Now it's full throttle ahead,' he said in a statement. Fernandes said the group has set 'ambitious but realistic internal targets for 2025' and confirmed it remains on track. 'Aviation is gaining momentum, Capital A businesses are outperforming expectations—particularly Teleport and Santan, gearing up for a stronger second quarter,' he said. He added that BigPay remains focused on a path toward profitability, targeting breakeven in the later part of the year by leveraging the AirAsia ecosystem and key partnerships. 'With Board approval secured, Capital A will now actively explore a dual listing on the Hong Kong Stock Exchange to supercharge our next growth chapter and broaden access to global capital markets. We anticipate providing further updates as developments unfold,' Fernandes said. In the first quarter ended March 31 (1Q25), Capital A posted a net profit of RM689.6mil, or earnings per share of 15.90, compared with a net loss of RM91.5mil, or loss per share of 2.20 in the year-ago quarter. Revenue for the quarter rose 15.2% to RM414.5mil against RM359.8mil last year. Fernandes said plans are taking shape for the brand company, Abc., to further grow its existing brands, expand its portfolio through acquiring strong Asean brands, and provide consultancy services to international brands seeking to enter the region. 'With our more than two decades of brand-building experience in Asean, we believe there is a lot of value to be unlocked, the only way we know how. We plan to revisit the opportunity to list Abc. on Nasdaq. 'I'm confident 2025 will be a defining year for Capital A.' Meanwhile, Capital A is now close to finalising a RM1bil private placement. However, it must first secure consent from two remaining aircraft lessors and obtain clearance from Thailand's Securities and Exchange Commission (SEC), the latter of which has experienced delays. 'As a result, the overall timeline is expected to shift, with completion now targeted by 3Q25,' it said.
New Straits Times
4 days ago
- Business
- New Straits Times
Capital A's Q1 net profit at RM689.6mil, reverses loss a year ago
KUALA LUMPUR: Capital A Bhd reported a net profit of RM689.6 million for the first quarter ended March 31, 2025, reversing a net loss of RM91.5 million in the same period last year. The turnaround was driven by growth across multiple segments, including travel, logistics, maintenance, repair and operations (MRO) services, and other travel-related businesses. Capital A's revenue rose 15.2 per cent to RM414.5 million from RM359.8 million a year ago, supported by broad-based improvements in both logistics and digital segments, as well as the group's ongoing diversification and expansion into non-airline ventures. No dividend has been proposed during the quarter. Capital A said it is nearing completion of a RM1 billion private placement. However, the process is pending consent from two remaining aircraft lessors and approval from Thailand's Securities and Exchange Commission, which has faced some delays. "As a result, the overall timeline is expected to shift, with completion now targeted by the third quarter of 2025," it added. Sharing its outlook on aviation, the group expressed confidence in sustained travel demand across major Asean markets for the rest of the year, supported by the summer peak period, May-June school holidays, and upcoming festive seasons. With jet fuel prices projected to stay favourable in the near term, Capital A plans to increase capacity to cater to the strong demand, offering competitive fares to grow market share while ensuring high load factors. "In Malaysia and Thailand, domestic resilience is being strengthened through revised pricing strategies and proactive capacity management. Improved performance is also expected in Indonesia, the Philippines and Cambodia. "This is underpinned by ongoing network optimisation and a more strategic balance of domestic and international routes, maximising aircraft utilisation and operational efficiency," it said.
New Straits Times
5 days ago
- Business
- New Straits Times
AirAsia brand value soars 66pct to RM8bil, now among top 24 global airlines
KUALA LUMPUR: Capital A Bhd's AirAsia has been ranked the 24th most valuable airline brand globally and the seventh most valuable brand in Malaysia, according to the Brand Finance Malaysia 100 2025 report. The group's brand value rose 66 per cent to US$1.93 billion (RM8.19 billion), driven by resurgent passenger demand, strategic route expansions to China and Central Asia and increased frequencies on high-demand routes. "I'm very proud of the results. This recognition reaffirms the resilience and relevance of the AirAsia brand," chief executive officer Tan Sri Tony Fernandes said in a statement. "To be ranked seventh among Malaysia's most valuable brands and 24th globally among airlines is a testament to the hard work of our Allstars and our relentless focus on making travel accessible, affordable and enjoyable for everyone." Brand Finance said Malaysia's top 100 brands collectively grew 16 per cent in 2025, with the airline sector posting an 85 per cent jump in value. AirAsia stood out for its agility in adapting to post-pandemic travel trends and recapturing market momentum. The airline maintained an AAA- brand strength rating and remained among the top 10 strongest brands in Malaysia, supported by high customer advocacy and strong regional brand affinity. Fernandes said AirAsia's broader ecosystem under Capital A, spanning logistics, fintech and digital ventures, remains a core part of its brand strategy and reinforces its role as a key player in Asean's connected economy. "As we grow beyond aviation, our focus remains on delivering value, innovation and connectivity to all our stakeholders across the region," he added.
New Straits Times
5 days ago
- Business
- New Straits Times
AirAsia brand value jumps 66pct to RM8bil, ranked among top 24 global airlines
KUALA LUMPUR: Capital A Bhd's AirAsia has been ranked the 24th most valuable airline brand globally and the seventh most valuable brand in Malaysia, according to the Brand Finance Malaysia 100 2025 report. The group's brand value rose 66 per cent to US$1.93 billion (RM8.19 billion), driven by resurgent passenger demand, strategic route expansions to China and Central Asia and increased frequencies on high-demand routes. "I'm very proud of the results. This recognition reaffirms the resilience and relevance of the AirAsia brand," chief executive officer Tan Sri Tony Fernandes said in a statement. "To be ranked seventh among Malaysia's most valuable brands and 24th globally among airlines is a testament to the hard work of our Allstars and our relentless focus on making travel accessible, affordable and enjoyable for everyone." Brand Finance said Malaysia's top 100 brands collectively grew 16 per cent in 2025, with the airline sector posting an 85 per cent jump in value. AirAsia stood out for its agility in adapting to post-pandemic travel trends and recapturing market momentum. The airline maintained an AAA- brand strength rating and remained among the top 10 strongest brands in Malaysia, supported by high customer advocacy and strong regional brand affinity. Fernandes said AirAsia's broader ecosystem under Capital A, spanning logistics, fintech and digital ventures, remains a core part of its brand strategy and reinforces its role as a key player in Asean's connected economy. "As we grow beyond aviation, our focus remains on delivering value, innovation and connectivity to all our stakeholders across the region," he added.
