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Singapore Investment


 CAPITALA 5099 pn17 CAPITAL A BERHAD 2Q net loss widens to RM931m amid forex loss, share of loss from associates

KUALA LUMPUR (Aug 26): Capital A Bhd made a wider net loss of RM931.22 million in the second quarter ended June 30, 2022 (2QFY22), compared with RM580.06 million in 2QFY21, mainly due to share of loss from associates and foreign exchange loss.

It recorded a share of loss of RM291.5 million from associates. The group said it was severely affected by foreign exchange losses of RM480.3 million, including 2.4 billion Thai baht recorded by its associate company, Asia Aviation Public Company Ltd, due to the depreciation of local currencies against the US dollar.

“Operating costs rose to RM1,245.0 million for 2Q2022, up by 243%, compared to the same period last year, as fuel costs surged significantly by 68% to an average fuel price of US$151 per barrel. Staff costs and maintenance expenses, mainly flying and ground crews, increased significantly year-on-year, in tandem with the restoration of flights,” noted the group.

In contrast, its quarterly revenue soared 277% to RM1.465 billion from RM388.91 million, on the back of the resumption of domestic and international travels.

“As a result of the relaxation of restrictions and robust travel demand, the group carried 5.56 million passengers, up 633% from 2Q2021. Passenger load factor was 84%, up by 16 percentage points,” said Capital A, which was formerly known as AirAsia Group Bhd, in a bourse filing.

It noted that 84% of its revenue was attributed to the aviation segment, 6% derived from the logistics business, 5.5% from the digital and other businesses and the remaining 4.5% from the engineering business.  

For the first half ended June 30, Capital A expanded its cumulative net loss to RM1.835 billion from RM1.35 billion, while cumulative revenue more than doubled to RM2.28 billion from RM710.05 million.

On a quarter-on-quarter basis, the group also saw a higher net loss in 2QFY22, compared with RM903.79 million in 1QFY21. Revenue in 2QFY22 grew 80.52% from RM811.78 million in the immediate preceding quarter.

Capital A said it is optimistic to perform better in 2022, supported by robust momentum in sales and the lifting of travel restrictions.

However, the group highlighted that the continuous Zero-Covid Policy in China was a significant factor that caused flights to and from Asia Pacific to lag behind those of other regions globally.

“Our strategy remains to strengthen our ecosystem of travel, e-commerce, logistics and fintech, to achieve long-term sustainable growth. The Covid-19 situation has improved from the previous quarter. Most of our operating markets have removed limitations on cross-border travel, quickly enabling tourist and service sectors towards normalcy,” it said.

At market close on Friday (Aug 26), Capital A shares were unchanged at 62.5 sen, giving it a market capitalisation of RM2.6 billion. The counter has fallen 22.84% since the beginning of this year.


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