In its quarterly operating results released today, Capital A revealed that it flew 13.2 million passengers in Q1 2023 versus 5.2 million in Q1 2022, and its load factor has increased from 75% to 89% during the same period, matching pre-pandemic levels.

The group’s passenger capacity has also increased to 14.8 million seats in Q1 2023, equivalent to 71% of Q1 2019 levels.

Capital A said that its current focus is to reactivate all of its 210 aircraft and ensuring passengers have seamless travel experience with AirAsia.

As of Q1 2023, the group has 142 operational aircraft in its fleet, double that of Q1 2022.

Thailand leads aviation growth

The group’s most impressive Q1 2023 results came from its Thai aviation arm.

AirAsia Thailand saw its total passenger carried rise 216% y-o-y from 1.5 million to 4.6 million and its load factor increased from 73% to 92% in Q1 2023 compared to the same quarter a year ago.

This sector’s growth was notably caused by high traffic from China routes, which boasted a load factor of 90% in Q1 2023.

Its international seats also grew 26% quarter-on-quarter (q-o-q), achieving 59% of Q1 2019 levels. Domestic sales, meanwhile, increased 8% q-o-q, reaching 92% of pre-Covid-19 levels.

Back home in Malaysia, the airline posted similarly positive results in Q1 2023.

AirAsia Malaysia’s total passengers carried for Q1 2023 grew 103% y-o-y from 2.8 million to 5.7 million while its load factor rose 14% from 74% to 88%.

The number of international passengers surged 17% q-o-q to 2.3 million passengers, driven largely by high Kuala Lumpur-Singapore traffic during the extended Chinese New Year holiday.

The number of domestic passengers carried grew 3% q-o-q, equivalent to a 92% load factor, which is about 75% of pre-pandemic levels.

Non-aviation segments showing promise

Meanwhile, Capital A’s non-aviation businesses also reported promising growth in Q1 2023.

Its engineering arm Asia Digital Engineering (ADE) recorded an increase in the number of lines and checks from 3 lines and 8 checks in Q1 2022 to 7 lines and 14 checks in Q1 2023.

Yesterday, ADE announced that it had secured a US$100 million (RM445.70 million) investment from OCP Asia Ltd to construct and operate a state-of-the-art 14-line aircraft maintenance hangar facility in Sepang, Selangor.

The first phase of the maintenance hangar is expected to be operational by Q2 2024 while the second phase would be ready by Q3 2024.

Capital A CEO Tony Fernandes said then that the group intends to expand its maintenance capacity and cater the service to aircraft belonging to other airlines as well.

The group’s digital business also posted similarly strong numbers with the SuperApp recording 12.9 million average “monthly active users” in Q1 2023, up by 12% q-o-q. The number of transactions reached 5.98 million, up by 99% y-o-y but down by 19% q-o-q.

Its BigPay digital e-wallet has also accumulated 1.37 million carded users in Q1 2023, growing 17% y-o-y and attracting 55,000 new users since the previous quarter.

As at 11.39am, Capital A shares were unchanged at RM0.75, giving it a market capitalisation of RM3.09 billion.