PETALING JAYA: Capital A Bhd’s (formerly AirAsia Group Bhd) net loss for the fourth quarter ended Dec 31, 2021 narrowed to RM884.09 million from a net loss of RM2.46 billion a year ago due to the recovery in air travel demand, improved revenue growth from the digital businesses and strict cost control measures, as well as the absence of impairments or fuel swap losses for the quarter.
Revenue went up 118% year-on-year to RM717.12 million from RM328.39 million helped by the aviation business.
For the full year, Capital A’s net loss narrowed to RM3.12 billion from a net loss of RM5.11 billion as the revival of the airline industry, particularly with governments in Asean countries gradually easing travel restrictions has contributed to the group’s reported growth in passengers carried and commendable load factor at 80% in the last quarter of 2021.
Revenue was down 47% to RM1.73 billion from the preceding year’s RM3.27 billion as airline revenue declined.
On the group’s outlook, Capital A CEO Tan Sri Tony Fernandes said Capital A is also now the holding company for more brands than any other company in Asean, with business verticals comprising AirAsia Aviation Group, airasia Super App, logistics venture Teleport, BigPay fintech services, the airline engineering business Asia Digital Engineering and venture arm Redbeat Capital.
“Importantly, the best is yet to come. We have pivoted, we have transformed and with our strategic growth plans we aim to see the digital segment contributing around 50% of overall group revenue by 2026. Once the airlines return to pre-pandemic levels in the near future, all of our other lines of business will benefit significantly and will all soar to new heights.”