KUALA LUMPUR: Capital A Bhd anticipates a strong final quarter to conclude 2023 and remains confident that it will deliver its true performance next year.
In a filing with Bursa Malaysia, the airline group said it had undergone a significant transformation from an Asean airline to a low-cost, high value aviation and travel services group, in a strategic response to the challenges of the pandemic.
“We have emerged from this period stronger and more diversified.”
The group said it has strategically revamped its airlines by focusing on cost control and maximising revenue.
“Our goal is to bring 187 aircraft back into service by year-end, around 80% of our pre-pandemic levels, leveraging the high travel season and the newly established visa-free travel between China and Malaysia starting Dec 1, 2023.
For its third quarter ended Sept 30, 2023, Capital A reported a lower net loss of RM178.82mil, compared with a net loss of RM901.31mil in the previous corresponding period, while revenue jumped to RM4.2bil compared with RM1.96bil a year earlier.
The company reported a basic loss per share of 4.30 sen, compared with a loss per share of 22.30 sen previously.
Capital A said the increase in revenue was mainly attributed to the strong recovery in demand from both domestic and international travel.
“In the third quarter, 86% of the group’s revenue was attributed to the aviation segment while the logistics, digital and other businesses contributed the remaining 14% to the group.”
For the nine-months period ended Sept 30, 2023, Capital A reported a net profit of RM996.55mil compared with a net loss of RM2.74bil in the previous corresponding period, while revenue more-than-doubled to RM9.9bil against RM4.24bil previously.
As the group approaches the final quarter, Capital A said it is poised for a revenue upswing, exceeding pre-pandemic levels.
“This optimistic outlook is grounded in robust travel demand during the peak season, allowing us to command peak fares and boost ancillary income, expected to surge by 50% compared to pre-Covid levels.
“This upturn in ancillary income is fueled by dynamic pricing initiatives and the launch of innovative products such as ZoneUp and FastPass.”
Additionally, Capital A said it is in the last stretch of finalising the PN17 regularisation plan, as it aims for a full submission to Bursa Malaysia in the near future.
“This careful planning ensures that our restructuring reviews and discussions are thorough, and reflect our dedication to long-term stability and strategic adaptability.
“As we navigate this final quarter, our strategic initiatives across corporate, aviation, logistics, engineering, and digital ventures are aligned to propel the group towards a future of sustainable growth, operational excellence, and financial strength.”