Capital A Berhad has recorded a RM305 million (approx. $73.59 million) net operating profit (NOP) for the third quarter ended 30 September 2025 (3Q2025). This was a sharp improvement from RM19 million a year ago – and an EBITDA of RM1.13 billion (approx. $273.4 million) on RM5.26 billion ($1.273bn) in revenue, delivering a profit after tax (PAT) of RM66 million for the quarter.
Headline revenue for the AirAsia Aviation Group dipped 2% year-on-year (YoY) to RM4.45 billion, primarily due to continued demand softness in Thailand. Despite marginal topline pressure, EBITDA surged 76% from a year ago to RM1.02 billion, with margin rising 10ppts to 23%, driven by normalisation of maintenance costs, lower fuel prices, as well as ongoing cost optimisation. NOP for the quarter was RM264 million – a turnaround from the RM42 million loss in 3Q2024 – with Indonesia and Cambodia turning profitable during the period.
Excluding Thailand, underlying performance remained robust with 3% YoY revenue growth, 30% EBITDA margin and 14% NOP margin, highlighting structural efficiencies built during the pandemic.
Load factor held steady at 83% even with a 7% YoY increase in capacity, which reached 87% of pre-pandemic levels (notably, this was achieved with significantly lower marketing spend of 0.9% of revenue versus 1.5% pre-pandemic)
Average fare and RASK trended lower by 2% and 4% respectively, impacted by Thailand’s shift towards domestic routes to mitigate softer international inbound traffic, though average fare was up 1% YoY across the rest of the network
RM50 ancillary revenue per passenger, with ancillary contribution steady at 18% of AirAsia Group revenue. Operational CASK decreased 12% YoY to USc4.26, largely driven by lower fuel prices and the return to a normalised maintenance profile
Two additional aircraft were reactivated in 3Q25, lifting active fleet to 208 out of 225 aircraft
“We expect a strong finish to the year, supported by the seasonal travel surge, a clear rebound in the Thailand market and rising demand from China,” said Group CEO of AirAsia Aviation Group Bo Lingam. “By strengthening domestic capacity in Malaysia, Thailand and Indonesia, and accelerating growth in the Philippines, we are already seeing higher loads and stronger ancillary performance. As our aircraft reactivation nears completion by year end, we are fully prepared to enter 2026 with a more productive fleet by growing the network in our core markets with increased frequencies and market share dominance. With our Indonesia and Cambodia businesses turning profitable in 3Q25, we are intensifying our turnaround efforts in the Philippines, which has always been a core market and strategic priority for us.”
“As we conclude the aviation corporate restructuring, alongside ongoing progress on debt restructuring, we expect to strengthen our credit profile, lower financing costs and improve liquidity. This will give us the financial resilience to advance our journey toward becoming a narrowbody-driven global low-cost network carrier,” added Bo Lingam.
On a pre-elimination basis, the Capital A Companies generated over RM817 million in revenue in 3Q2025, up 6% on-year. EBITDA rose 25% YoY to RM113 million, while NOP came in at RM42 million, 31% down YoY mainly on a gain from the remeasurement of interest in the previous year. This drove a PAT of RM22 million, reversing the RM50 million loss from a year ago.
Revenue for ADE, the MRO provider, rose 20% YoY to RM221 million, driven by a four-line expansion of hangar capacity to 16 lines and a 3% increase in third-party customers during the period. EBITDA strengthened to RM53.5 million from RM29.6 million a year ago, with margin improving 8ppts YoY to 24% on higher maintenance volumes as the enlarged footprint ramped up. Maintenance costs tracked revenue growth, while staff costs grew with personnel transfers from PAA and IAA. Depreciation increased following investments in rotables and tooling, while interest expenses fell as loan repayments progressed from 2Q25.
“This quarter reinforces ADE’s trajectory as a regional MRO leader,” says CEO of ADE Mahesh Kumar. “Third-party demand continues to grow, and our KLIA expansion plans are moving forward as we secure the financing that will unlock our next phase of growth. Wins like the Air France A330 agreement reflect the trust global airlines are placing in us, underscoring the growing relevance of our capabilities. We’re laying the groundwork for a larger, more competitive ADE, one that will elevate Malaysia’s role in the regional aviation ecosystem.”
AirAsia Move and Teleport also reported solid gains.
Commenting on the business outlook, CEO of Capital A Tony Fernandes, said that the company had built real momentum in the third quarter, putting the company in a strong forward-looking position. “With the airline disposal nearing completion and PN17 uplift in sight, we are closing the chapter on restructuring and shifting into growth mode,” he said.
Fernandes added that he has confidence from the progress made by the group: “ADE is gearing up to go regional, Teleport is in the top 10 in Asia, MOVE owns the budget OTA space and Santan now serves people on trains. And while it’s early days, AirAsia Next has the potential to become an AI-driven brand and loyalty machine like no other.”
He concluded: “These engines of growth give us real lift as we enter the final stretch of 2025. We’ll continue to sharpen how we operate and be more focused on the opportunities that deliver the biggest impact. Capital A is evolving into something stronger and more valuable, and I’m incredibly optimistic about what lies ahead.”