CAPITALA 5099 pn17 CAPITAL A BERHAD's net loss widened to RM931.22mil in Q2

 CAPITALA 5099 pn17 CAPITAL A BERHAD's net loss widened to RM931.22mil in Q2

Capital A chief executive officer Tan Sri Tony Fernandes said the V-shaped recovery of the travel industry and economy, which it previously anticipated, has significantly benefited the company's airline and non-airline businesses. Bernama pix

KUALA LUMPUR: Capital A Bhd's net loss widened to RM931.22 million in the second quarter (Q2) ended June 30, 2022, from the net loss of RM580.06 million recorded in the same quarter last year.

Revenue in Q2 surged almost three-fold to RM1.47 billion from RM388.91 billion.

In a statement, the budget airline operator said its logistics arm, Teleport, reported lower revenue of RM99 million—down by 36 per cent year-on-year (YoY).

This was amid a transition from using passenger planes for cargo-only use to a more sustainable long-term model of AirAsia's belly cargo space.

Digital businesses reported robust revenue growth of 192 per cent YoY, driven by airasia Super App and BigPay.

The aviation, logistics, and digital businesses contributed 88 per cent, seven per cent and five per cent, respectively, of the total revenue in Q2 2022.

Capital A chief executive officer Tan Sri Tony Fernandes said the V-shaped recovery of the travel industry and economy, which it previously anticipated, has significantly benefited the company's airline and non-airline businesses.

"As we continue to recover from the impact of the global pandemic, we are pleased to have noted a significant rise in our air passenger traffic, allowing us to significantly grow our maintenance, repair and overhaul (MRO) business, as well as record-breaking e-commerce delivery orders, incremental travel bookings via the airasia Super App platform, and improved usage of our fintech BigPay services.

"We are also pleased to have reached a mutual ground between our Malaysian-based airline, AirAsia Bhd, and our medium-to-long-haul affiliate AirAsia X Bhd, to withdraw all legal proceedings against Malaysia Airports Holdings Bhd (MAHB).

"All parties will work symbiotically to reach an amicable outcome on the resolution of any outstanding matters and will look towards the future to stimulate Malaysia's tourism and economic growth, together," he said.

For the six months, Capital A's net loss widened to RM1.84 billion from RM1.35 billion, while revenue surged to RM2.28 billion from RM710.05 million.

Fernandes said Capital A is finalising the PN17 proposals and targets to submit to Bursa Malaysia for approval within the timeframe.

"Additionally, we have successfully restructured our fleet liabilities, and financing has been secured, including extending the lease terms to 2029.

"Capital A is also well-poised to benefit from a rational marketplace for our digital and aviation businesses.

"We will continue to drive value creation across our businesses, ensuring our competitive advantage moving forward," he said.

https://www.nst.com.my/business/2022/08/826313/capital-bhds-net-loss-widened-rm93122mil-q2