KUALA LUMPUR: Capital A Bhd reported a net loss of RM91.55 million for the first quarter of 2024 (1Q24), a significant drop from the net profit of RM57.09 million recorded in the same period the previous year on a RM370.9 million foreign exchange paper loss.
Despite this, the company's revenue for the quarter surged to RM5.24 billion, marking a 107 per cent increase from RM2.5 billion the corresponding quarter.
In a filing with the stock exchange, Capital A attributed the revenue increase to a strong recovery in demand for both domestic and international travel."In the first quarter, 89 per cent of the group's revenue was attributed to the aviation segment while the logistics, digital and other businesses contributed the remaining 11 per cent to the group," it added.
The airline also credited the growth to the performance of its diverse ecosystem, which includes Aviation Group and other Capital A companies such as Capital A Aviation Services, Teleport, MOVE Digital, and Capital A International.
Capital A reported a positive Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of RM1.03 billion in 1Q24, compared to an EBITDA of RM502.2 million in the first quarter of 2023 (1Q23).
This increase was driven by the improved overall performance of the aviation segment.
Capital A chief executive officer Tan Sri Tony Fernandes said the results, powered by twin engines of growth in the Aviation Group and Capital A companies, speak volumes about resilience and growth potential.
"In the first quarter alone, we have hit multiple new records that culminated in our best-ever quarterly financial performance."The Aviation Group reached historic highs for revenue, EBITDA and ancillary income despite operating with over a fifth of our fleet still grounded," he said.
Tony noted the company is gaining momentum in its efforts to unlock the full value of businesses, both airline and non-airline.
"We recently announced the proposed divestment of our aviation business to unlock its value as a pure-play business."Next, we will submit the circular to Bursa Malaysia by June and move a step closer to resolving our Practice Not 17 (PN17) status through the submission of our regularisation plan a month later," he emphasised.
The CEO highlighted that the upcoming six months will be crucial for Capital A as it implements strategic initiatives to tackle challenges and capitalise on exciting opportunities.
"At the end of this period, I believe we will have delivered an amazing turnaround – emerging stronger with two strong groups of businesses with immense potential and transformative value creation for our stakeholders," said Tony.