AirAsia operator makes first annual profit since COVID pandemic

Capital A, the parent of budget airline AirAsia, reported on Thursday its first full-year profit since the COVID-19 pandemic struck four years ago thanks to strong travel and freight demand. Capital A recorded a net profit of 507.6m ringgit ($107m) for the year ended in December, swinging from a loss of 3.3b ringgit in the previous year, it said. Revenue jumped by 129% year on year to 14.8b ringgit in 2023. The figure is also 25% higher than in 2019 despite the company operating only 80% of the fleet it was using in the pre-pandemic year. Tony Fernandes, CE of Capital A and co-founder of AirAsia, said the group has emerged "stronger and more resilient than ever," helped by its diversified business model. Bo Lingam, the CEO of AirAsia Aviation Group, painted a positive outlook for 2024 and set a target of achieving 90% of pre-pandemic capacity for units AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia and AirAsia Philippines. "We aim to bolster our capacity on routes to China and India, taking advantage of the robust demand while also putting strategic emphasis on other high-yield routes," Lingam said. AirAsia Aviation Group recorded a passenger load of 88% in 2023, an increase of five percentage points year on year. The regional airlines carried nearly 57m passengers in 2023, reaching 77% of the pre-pandemic level. Revenue for 2023 surged 143% to 13.5b ringgit from 2022. Lingam said he expected further upside in ancillary income and a fall in fuel prices. Capital A's subsidiary logistics business, Teleport, posted a 56% year-on-year rise in revenue to 730.9m ringgit, driven by a 275% annual rise in the volume of e-commerce parcels it delivered. Cargo volume also rose 88% in 2023 from a year ago. Teleport's earnings before interest, taxes, depreciation and amortization rose to 20m ringgit in 2023, from an EBITDA loss of 26.9m ringgit in 2022.<br/>