Capital A trims net loss to RM3.12b in FY21

Capital A Bhd, previously known as AirAsia Group Bhd, has narrowed its net loss to RM3.12 billion in the financial year ended Dec 31, 2021 (FY2021) from RM5.11 billion in FY2020.

Revenue shrank to RM1.73 billion versus RM3.27 billion previously, it said in a filing to Bursa Malaysia.

Capital A said Teleport has contributed to 31 per cent of the group’s revenue.

In addition, Super App and BigPay saw steady growth in their revenues as it launched more products and invested into technology and talent to scale up business.

Overall, the impact of the COVID-19 pandemic continues to affect the group’s operations adversely.

‘’While international borders remained closed, the group focused on providing domestic operations in our operating countries while growing our digital businesses,’’ it said.

In FY2021, the load factor for the aviation group remained healthy at 74 per cent following strategies implemented to manage the multiple disruptive lockdowns imposed by the respective governments.

The airline carried 4.81 million passengers during year down 64 per cent from 13.31 million in FY2020.

For the fourth quarter (Q4) ended Dec 31, 2021, net loss trimmed to RM884.09 million from RM2.45 billion in Q4 FY2020, while revenue jumped to RM717.12 million compared to RM328.39 million previously.

Capital A said the improvement in revenue was due to easing travel restrictions and the introduction of quarantine free travel lanes.

About 64 per cent of group revenue was attributed to the aviation segment while the remaining 36 per cent was derived from the digital businesses. Teleport accounted for 19 per cent of revenue against 10 per cent in Q4 FY2020.

It said for AirAsia Malaysia, the passengers carried and capacity increased by 164 per cent and 139 per cent respectively as compared to the same quarter in the previous year, on the back of rising demand after the reopening of state borders.

Its load factor increased by seven percentage points year-on-year and 19 percentage points quarter-on-quarter to 80 per cent in conjunction with the year-end festive season and increased frequencies on high demand routes including between Kuala Lumpur (KL) and Langkawi, followed by the KL-Kota Kinabalu route in November and December 2021.

AirAsia Malaysia ended the year with a high load factor of 76 per cent.

As for AirAsia Indonesia, its load factor grew 22 percentage points to 81 per cent Q4 FY2021 driven by increased frequency of flights in line with growing demand, particularly in December 2021. For 2021, the load factor was 64 per cent.

AirAsia Philippines continued to outperform with load factor achieving 85 per cent for the Q4 FY2021 as a result of strong pent up demand in a number of core destinations including Cebu, Cagayan de Oro, Boracay, and Tacloban. It posted a healthy 2021 load factor of 80 per cent.

Meanwhile, Teleport’s revenue was 274 per cent stronger year-on-year following its cargo network strategic growth, undertaken to compensate the 90 per cent reduction to pre-pandemic passenger capacity.

Capital A said earnings before interest, tax, depreciation and amortisation returned to the black in Q4 FY2021 as cargo margins improved significantly as the network was optimised to take advantage of the seasonal upturn in yields.

Similarly, the delivery segment’s volume grew 950 per cent year-on-year and 90 per cent quarter-on-quarter to nearly 600,000 deliveries in Q4 FY2021.

At end-2021, BigPay’s user base increased by 50 per cent compared to the previous year, it said.

Capital A said through various fundraising exercises, wherein the group has raised more than RM2.5 billion in the last two years, and continuing strict cost containment policy, the firm foresees it will not only have sufficient liquidity to sustain the business operations throughout 2022 but also recover fast as the world continues to gradually open up.

‘’Other than the aviation segment, we are seeing solid traction across all of our other portfolio companies including our aircraft engineering maintenance business, Asia Digital Engineering, and Teleport, our cargo and last-mile logistics venture.

‘’Our Super App is the fastest growing in ASEAN and our financial technology division BigPay is on track to truly democratise financial services across the region,’’ it noted.– BERNAMA