KUALA LUMPUR (Feb 28): Capital A Bhd’s net loss narrowed to RM2.48 billion in the financial year ended Dec 31, 2022 (FY2022), from the loss of RM2.99 billion recorded in 2021, as air travel bounced back strongly in the fourth quarter.

Revenue soared to RM6.61 billion in 2022 compared with RM1.84 billion in the previous year due to the relaxation of travel restrictions, the operator of AirAsia said in a filing to Bursa Malaysia on Tuesday.

In the fourth quarter of FY2022 (4QFY2022), Capital A returned to the black with a net profit of RM256.2 million against a net loss of RM756.59 million in 4QFY2021, while revenue surged to RM2.37 billion from RM821.04 million previously.

“[A total of] 83% of the group’s revenue was attributed to the aviation segment, while 6% was derived from the logistics business, 8% from the digital and other businesses, and the remaining 3% was contributed by the engineering business.

“The revenue for engineering was more than double the revenue in the fourth quarter of 2021, while Teleport saw an increase in revenue by 17%, mainly due to contribution from international widebody capacity in 4QFY2022,” it said.

The group reported positive earnings before interest, taxes, depreciation, and amortization (Ebitda) of RM488.6 million in 4QFY2022 compared with a negative Ebitda of RM350.2 million in 4QFY2021, following the reversal of impairment on right-of-use assets of RM160.8 million that was related to operating aircraft, impairment on investment securities and receivables of RM53.3 million.

Capital A said the aviation group’s revenue jumped 348% quarter-on-quarter (q-o-q) to RM2.12 billion in the fourth quarter in tandem with the upsurge of domestic and international travel despite the higher cost of fuel.

Engineering arm Asia Digital Engineering’s revenue increased 151% q-o-q to RM74.6 million in the fourth quarter as travel resumption and increased flights drove the demand for maintenance, repair, and overhaul services.

Its airasia Super App's revenue for the quarter was RM137.7 million, a significant 42% increase q-o-q driven by the strong revival of domestic travel demand and resumption of international travel in the Asean region, it said.

The group expects 2023 to be a year of growth due to the resumption of routes and the return of its fleet amid the easing of travel restrictions and the reopening of borders around the region.

“Supported by the recent lifting of China’s zero-Covid policy, we foresee healthy international travel demand and a continuation of robust demand in the fourth quarter of 2022.

“We will continue to strengthen our market presence in Asean and aim to have our entire fleet of 204 planes back online by the third quarter of 2023,” it said.