PETALING JAYA: A strong final quarter can be expected of Capital A Bhd
, supported by peak travel, firm forward booking momentum and a recovery in Thailand since October 2025.
Full fleet availability by year-end should position the group well for 2026, when it plans to add 10 aircraft alongside seven redeliveries, said MBSB Research.
It said the group’s third quarter of financial year 2025 (3Q25) results were better than expected, though MBSB Research remains cautious about potential maintenance cost pressures in 4Q25.
It revised its financial year 2025 (FY25), FY26 and FY27 earnings up by 42%, 41% and 35%, respectively, after factoring in lower operating expenses and a softer average fare in the aviation segment as yields ease with rising capacity.
MBSB Research raised its target price (TP) to RM1.26 from 95 sen a share based on eight times FY26 earnings per share.
It also upgraded its call from “neutral” to a “buy” for the stock.
Several research houses expect the group to continue to gain traction in 2026.
Hong Leong Investment Bank Research, meanwhile, expects seasonally stronger travel demand in the fourth quarter with US dollar depreciation and lower jet fuel prices.
The group is focusing on intra-Asean and Asean-north Asia markets, and the average fare is expected to stay healthy at the RM240 level.
Maybank Investment Bank Research (Maybank IB) expects December 2025 to be busy for Capital A as it sells its five airlines to AirAsia X (AAX) in exchange for new AAX shares in an effort to lift its Practice Note 17 (PN17) classification.
Maybank IB has lifted its earnings estimates by 37% to 53% and raised its TP to RM1.30 a share from RM1.09 a share.
It rolled forward its valuation base year to FY26 from FY25.
TA Research raised its FY25 to FY26 earnings projections by 19.1% to 54.6% after revising the depreciation and tax expense assumptions lower.
Kenanga Research maintained its earnings forecasts and retained its TP at 88 sen a share. It has a “market perform” call on the stock.
It likes the group for being a beneficiary to the recovery in air travel post-pandemic, its growing digital business leveraging its strong AirAsia brand and AirAsia’s existing client base, and its dynamic and visionary leadership that should help steer it out of the current financial difficulty.
However, it is mindful that the group is still under the PN17 status.
Furthermore, the risks to its call include stronger recovery in air travel, lower jet fuel prices, sooner-than-expected uplift from the PN17 status and monetisation of its digital assets.
