PETALING JAYA: Capital A Bhd

expects the aviation sector to be well-positioned for a robust second half, with the fourth quarter traditionally the strongest quarter of the year.

For the second quarter ended June 30, 2025 (2Q25), the aviation group’s net profit was at RM1.45bil (or earnings per share of 33.50 sen), compared with a net loss of RM454.18mil a year earlier.

Revenue was up by 22.7% year-on-year (y-o-y) to RM422.61mil.

Capital A said the improved performance in 2Q25 was driven by expansion across its diverse operational sectors, including travel, logistics, maintenance, repair and overhaul services, and other travel-related ventures.

Over the six-month period, the group posted a net profit of RM2.14bil from a net loss of RM545.73mil in the previous corresponding period. Revenue increased by 19% y-o-y to RM837.13mil.

In 2Q25, the group’s Asia Digital Engineering segment reported a total revenue reaching RM219mil, marking a significant 26% y-o-y increase. This was largely attributed to an increased volume of line hangar checks, alongside a rise in over and above and ad-hoc line maintenance services provided in the Philippines and Indonesia.

Moreover, Teleport, the group’s integrated logistics arm, delivered RM255mil in revenue for 2Q25, a 13% y-o-y increase despite operational headwinds, driven by a 52% surge in eCommerce revenue to RM87mil. This performance was supported by significant volume growth, with parcels improving 62% y-o-y to RM31.6mil in 2Q25 and total tonnage improving 21% y-o-y to 77,213 tonnes over the same period.

As for AirAsia Move, monthly active users in 2Q25 has steadily grown 6% y-o-y, supported by sustained organic growth, with the MOVE app continuing to see strong traction, averaging around 1.9 million installs per month which has stayed relatively consistent over the last year.

Net promoter score improved by 23 points y-o-y and seven points quarter-on-quarter, with gains attributed to simplification, platform stability, and improved service.

Looking ahead, Capital A said the summer holiday season in China and North Asia is expected to boost inbound travel to Asean. This should benefit all air operator's certificates, especially Malaysia, though there has not been a similar rebound from China into Thailand.

Additionally, various regional festivities and long weekends in countries like Malaysia will further stimulate domestic and intra-Asean travel.

Moreover, the group said Malaysia’s revenue outlook is encouraging, underpinned by domestic capacity expansion to sustain a 60% market share and resilient international demand.

Further, the group stated Thailand remains an important market, with plans to maintain market share, especially domestically, through targeted capacity and refined pricing strategies, while Indonesia is benefiting from the inbound summer peak and new routes into Kalimantan.

Additionally, the Philippines is expected to see a strong 4Q post-network optimisation, with new routes also contributing to unit revenue and profitability.

Meanwhile, AirAsia said new routes are also contributing to growth momentum. In particular, AirAsia Group intends to dominate international connectivity between Malaysia and Indonesia, starting with five new routes this year.

In addition, fifth-freedom services continue to perform well, with new routes from Kuala Lumpur to Japan via Taiwan providing robust yields. Fly-Thru passengers connecting within the AirAsia network continue to grow, up 5% y-o-y and on its way to recover to pre-pandemic levels.

The group said all aircraft are expected to be active by year-end. In 2025, Capital A took delivery of two new A321neo aircraft earlier in the year, with six scheduled redeliveries to follow, bringing the fleet to 220 aircraft by year-end.