Capital A upbeat despite aviation revenue dive in 2021

The aviation business of Malaysia’s Capital A – formerly the AirAsia Group – saw aviation revenue plummet by two thirds in a brutal 2021 financial year. For the year ended 31 December 2021, the group’s aviation business posted revenues of MYR997m, down 65% from 2020, according to its full-year earnings release. The aviation group’s EBITDA loss narrowed to MYR789m from MYR3.4b a year earlier. The EBITDA improvement during 2021 was due to the halving of staff costs at the aviation unit, as well as a reduction in ‘other operation expenses’ from to MYR238m in 2021, from MR2.3b a year earlier. Passengers carried in 2021 fell 64% to 4.8m, while ASKs dived 70% and RPKs 71%. Reflecting a pick-up in air travel amid a loosening of coronavirus-related travel restrictions, aviation revenue for Q4 2021 more than doubled to MYR463m, while Q4’s EBITDA losses narrowed to MYR330m from MYR2.3b a year earlier. The fourth quarter also saw passengers carried double to 2.7b, ASKs rise 72%, and RPKs rise 109%. Load factors during the quarter were 80%, the highest number since coronavirus pandemic emerged from Wuhan, China in early 2020. “AirAsia Aviation Group’s performance in the last quarter was encouraging, backed by the festive holiday season and easing travel restrictions,” says CE of AirAsia Aviation Group Bo Lingam.<br/>