AIRASIA
Airasia Group Berhad
Company Background
AirAsia Expects Bullish Year Driven by Strong Recovery, Connectivity
AirAsia is set for a strong financial year in 2025 driven by strong recovery, strategic expansion and operational efficiencies.
AirAsia Aviation Group Ltd group chief executive officer Bo Lingam said over 30 new routes will be introduced this year to strengthen ASEAN and domestic connectivity, thus reinforcing its position as the region's leading low-cost airline.
"This year, as we return to full capacity, we will be balancing growth with profitability. Our network strategy will prioritise strategic and demand-driven connectivity across Asia," he said at a media briefing here today.
Furthermore, he said, the airline expects to operate a fleet of 234 narrowbody aircraft this year across the group's five short-haul airlines, restoring full pre-pandemic capacity.
"Only 16 aircraft remain to be reactivated, while 14 new aircraft deliveries have been confirmed for 2025, four from Airbus and 10 via lessors," he said.
Bo said the group's vision is to make Kuala Lumpur at par with Dubai as a busy and world-class aviation hub.
Asked on additional new aircraft, he said discussion is ongoing actively with three manufacturers - Airbus, Embraer and Comac.
He said the decision is likely in June this year, to ensure technical specifications of single-aisle aircraft are efficient to serve AirAsia's routes.
In December last year, Capital A Bhd's chief executive officer Tan Sri Tony Fernandes was reported as saying AirAsia was looking to expand its fleet with at least 100 new aircraft to supplement its Airbus A321s.
Bo said AirAsia's network optimisation is also expected to be completed by the second quarter this year, with frequency increases across high-demand routes beginning in the same period.
"In parallel, the group is evaluating new routes to meet growing intra-Asia travel demand driven by easing visa initiatives across key markets including China, India, Thailand and Malaysia, aligned with evolving travel trends," he added.
Bo said AirAsia is responding directly to market demand and Fly-Thru opportunities with over seven million Fly-Thru guests targeted this year from 4.3 million in 2024.
He said Fly-Thru is likely to be contributing 10 per cent of passengers this year via leveraging Thailand's Don Mueang International Airport (DMK) and Kuala Lumpur as key hubs and maximise traffic from North Asia, Australia, Central Asia and Middle East.
"Our mega hubs in Kuala Lumpur (KUL) and Bangkok-Don Mueang (DMK) will continue to anchor Fly-Thru growth, currently handling 95 per cent of Fly-Thru traffic.
"At the same time, we will expand other hubs and look forward to adding over 1,700 weekly return flights and 323,336 weekly seats across the group by the end of 2025,” he said.
Meanwhile, deputy group chief executive officer Farouk Kamal said AirAsia is exploring refinancing options to reduce interest costs on its US dollar-denominated debt, which currently stands at around 11 to 12 per cent.
He said by securing financing from domestic banks, the rate is expected to be lowered to seven to eight per cent.
Farouk said the move will result in significant interest cost savings for the group, adding that the financing will be obtained through domestic banking institutions, including the potential issuance of domestic bonds. - Bernama
$AAX / 5238 (AIRASIA X BERHAD)
$AIRASIA / 5099 (AIRASIA GROUP BERHAD)
Teleport Generates RM1.1bil in Total Revenue
Teleport, Capital A's logistics arm, surpassed its target after generating RM1.1bil in total revenue in 2024, up by 10% from its initial guidance of RM1bil.
The amount reflected a 49% year-on-year (y-o-y) jump from the previous year’s revenue of RM731mil.
Chief executive officer Pete Chareonwongsak attributed the higher income to the significant increase in revenue contribution by its eCommerce segment, which increased by 130% y-o-y to RM328mil.
Meanwhile, the company’s cargo segment remained the major contributor to the group’s revenue at RM760mil.
Teleport’s earnings before interest, taxes, depreciation and amortisation (Ebitda) for the year had increased to RM90mil from RM29mil, reflecting a 215% y-o-y growth.
In the fourth quarter of financial year 2024 (4Q24), the company posted a record-high revenue of RM352mil as well as an Ebitda of RM30mil.
“We really did not see anything other than continued growth, especially for eCommerce and logistics overall,” Chareonwongsak said during Teleport’s results briefing yesterday.
He said it was worth mentioning that over 50% of the revenue for the quarter was generated outside of AirAsia’s capacity – seeing that Teleport utilises seven of AirAsia’s airlines to move cargo.
As of now, Teleport utilises about 40 partner airlines on top of its own freighters.
Chareonwongsak added that 2025 will be the year of scalability for Teleport, as the group plans to create more volume and increase profitability.
On that note, he remains confident in the groups’ ability to deliver two million parcels a day by the end of 2025 supported by the eCommerce market.
“To us, that is where the two million (parcels a day) comes from, because that figure translates into volumes that are about a million tonnes a year or better.
“So, we can get there organically and we aim to get to a global scale within the next year,” he said.
Other strategies include strengthening partnerships with existing airlines for more capacity, increasing direct volumes from China’s top eCommerce marketplaces, leveraging tech for value-added services and optimising end-to-end costs.
As of now, the group has delivered about 84.1 million parcels in total at a peak of 368,000 parcels a day.
“It is more than five times the present haul to reach two million parcels a day. But I am confident we can achieve the goal by this year,” he affirmed.
Of note, he said Teleport will be made public later in the year.
Without disclosing further details on the timeline and the amount looking to be raised, he affirmed that market interest is there.
“We do attract a lot of interest from around the region and beyond.
“In short, I believe what makes us an investable company is that we are a regional company,” he said, adding that there is a significant number of investable companies in South-East Asia that are undergoing growth stages and are profitable at the same time.
Teleport is among Capital A’s non-aviation key contributors, alongside Asia Digital Engineering and AirAsia MOVE.
The company had contributed about 36% in Capital A’s non-aviation revenue in financial year 2024.
$AIRASIA / 5099 (AIRASIA GROUP BERHAD)
Source: The Star
$CAPITALA $AIRASIA / 5099 (AIRASIA GROUP BERHAD)
Research by Maybank
$CAPITALA $AIRASIA / 5099 (AIRASIA GROUP BERHAD)
Research by PublicInvest
$AIRASIA / 5099 (AIRASIA GROUP BERHAD) $CAPITALA
Research by PublicInvest
$AIRASIA / 5099 (AIRASIA GROUP BERHAD)
Change the name to CAPITALA la, adui....
KUALA LUMPUR: AirAsia Group Bhd has been recognised by the OAG Megahubs Index 2024 as a key contributor to Kuala Lumpur International Airport's (KLIA) ranking as the world's top Low-Cost Carrier (LCC) Megahub.
HLIB TOP PICKS Q4 2024
Rejuvenation of domestic fundamentals. Our positive stance on Malaysian equities goes beyond the Fed’s rate down cycle as the country is seeing rejuvenated domestic fundamentals with GDP growth picking up, record approved investments and subsidy reforms in motion, alongside a more stable political landscape. We remain upbeat on the following themes that we had earlier introduced for 2024: (i) continued robust tourism recovery, (ii) energy transition under NETR, (iii) Johor’s developmental reinvigoration, (iv) disposable income boosting measures from EPF Account 3 and civil servants pay hike and (v) trade diversion and proliferation of the China+1 strategy from the US-China trade war.
$YTLPOWR / 6742 (YTL POWER INTERNATIONAL BHD) $AIRASIA / 5099 (AIRASIA GROUP BERHAD) $SMRT / 0117 (SMRT HOLDINGS BERHAD) $MNHLDG / 0245 (MN HOLDINGS BERHAD) $IOIPG / 5249 (IOI PROPERTIES GROUP BERHAD)
AirAsia to Add 2,000 Weekly Flights, 150,000 Seats Across 40 Key Routes By Year-End
AirAsia is expanding its domestic connectivity across Malaysia with the addition of 2,000 weekly flights and 150,000 seats across 40 key routes by the end of the year.
As a result of this expansion, the low-cost carrier said AirAsia’s market share is expected to increase to 64 per cent, reinforcing its leading position in the Malaysian aviation sector.
"Timed to meet the growing demand for year-end travel, this expansion will provide more flight options and flexibility for local and regional guests, connecting them to diverse and vibrant destinations across Malaysia,” it said in a statement today.
As the carrier expands domestic operations with 1.7 million seats available for booking by year-end, AirAsia Malaysia managing director Datuk Captain Fareh Mazputra said the carrier is also opening doors for regional travellers to explore and experience Malaysia’s unique destinations, cultures and cuisines.
"Our growth and market leadership are not just about flying more routes but about playing a pivotal role in supporting the national economy and enhancing connectivity. However, these efforts cannot be done by AirAsia alone,” he said.
Therefore, Fareh said AirAsia calls on all stakeholders, including the government, airports, tourism bodies and other industry players, to join forces collectively to make travel more accessible and affordable for everyone, especially Malaysians.
In line with its ongoing efforts to enhance the customer experience, AirAsia said it has introduced AirAsia Plus, offering added value to passengers flying to and from Sultan Abdul Aziz Shah Airport.
"The AirAsia Plus fare includes 7.0 kilogramme (kg) cabin baggage, 20.0 kg checked baggage, seat selection, inflight meal or snack as well as baggage and on-time guarantee (OTG) insurance,” it added. - Bernama
$AAX / 5238 (AIRASIA X BERHAD)
$AIRASIA / 5099 (AIRASIA GROUP BERHAD)
Source: https://cutt.ly/7eYXvoEP
Aviation
Research by Kenanga
Neutral
$AIRPORT / 5014 (MALAYSIA AIRPORTS HOLDINGS BERHAD) $AIRASIA / 5099 (AIRASIA GROUP BERHAD)
“Corporate Exercises Upstage Air Travel Recovery”
We maintain our NEUTRAL view on the sector. We project tourist arrivals of 27m in CY24, up 35% from 20m in CY23 and surpassing 26.1m in CY19 before the pandemic, backed by higher demand for both business and leisure air travel. The number is consistent with Tourism Malaysia’s target of 27.3m. This will translate to a sustained recovery in passenger throughput at AIRPORT and passengers carried at CAPITALA. For AIRPORT, the poser is if the proposed privatisation by a consortium at RM11.00/share will be accepted by its minority shareholders. Meanwhile, while CAPITALA has been able to fill up seats in its planes, there is room to boost yields to ensure profitability after accounting for depreciation, aircraft leasing charges and finance cost. We do not have any pick for the sector.
Analyst:
Raymond Choo Ping Khoon
pkchoo@kenanga.com.my
OTHERSCapital A Berhad ("Capital A" or the "Company")
- Announcement on Percentage of Foreign Shareholding in Capital A as at 28 June 2024
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT
Additional Listing Announcement /Subdivision of Shares
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : OTHERS
$AIRPORT / 5014 (MALAYSIA AIRPORTS HOLDINGS BERHAD) $AIRASIA / 5099 (AIRASIA GROUP BERHAD)
AVIATION
$AIRPORT / 5014 (MALAYSIA AIRPORTS HOLDINGS BERHAD) $AIRASIA / 5099 (AIRASIA GROUP BERHAD)
Research by MIDF
Neutral
“Near Full Recovery Thanks to Holiday Season”
Maintain NEUTRAL. Our outlook for passenger traffic remains unchanged, with projections indicating a +2.0% growth compared to 2019 levels, consistent with MAVCOM’s higher-range forecast. However, potential risks include delays in AirAsia’s full fleet reactivation and disruptions in Boeing aircraft deliveries to local airlines, which could impact these projections.
Analyst(s):
MIDF Research Team
midf@research.com.my
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RELATED PARTY TRANSACTIONSCAPITAL A BERHAD ("CAPITAL A" OR THE "COMPANY")
(I) PROPOSED AAAGL DISPOSAL;
(II) PROPOSED AAB DISPOSAL; AND
(III) PROPOSED DISTRIBUTION
(COLLECTIVELY, THE "PROPOSALS")
Changes in Director's Interest (Section 219 of CA 2016) - TAN SRI ANTHONY FRANCIS FERNANDES (Amended Announcement)
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - TAN SRI ANTHONY FRANCIS FERNANDES (Amended Announcement)
Additional Listing Announcement /Subdivision of Shares
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RELATED PARTY TRANSACTIONSCAPITAL A BERHAD ("CAPITAL A" OR THE "COMPANY")
(I) PROPOSED AAAGL DISPOSAL;
(II) PROPOSED AAB DISPOSAL; AND
(III) PROPOSED DISTRIBUTION
(COLLECTIVELY, THE "PROPOSALS")
Additional Listing Announcement /Subdivision of Shares
General Meetings: Outcome of Meeting
DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period
Changes in Director's Interest (Section 219 of CA 2016) - TAN SRI ANTHONY FRANCIS FERNANDES
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - TAN SRI ANTHONY FRANCIS FERNANDES
Additional Listing Announcement /Subdivision of Shares
Additional Listing Announcement /Subdivision of Shares
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT
Additional Listing Announcement /Subdivision of Shares