CAPITAL A’s results were better than expected, though MBSB Research remains cautious about potential maintenance cost pressures in the four quarter financial year 2025 (4QFY25).
A strong final quarter is expected, supported by peak travel, firm forward booking momentum, and a recovery in Thailand since Oct-25. Full fleet availability by year-end should position the Group well for 2026, where it plans to add 10 aircraft alongside 7 redeliveries.
The aviation disposal is expected to be completed by the end of December, subject to High Court approval. Capital A recorded a core net profit of RM271.3 mil in 3QFY25, bringing the nine months of financial year 2025 (9MFY25) to RM474.7 mil, beating MBSB’s full-year estimate by +12%.
The outperformance was driven mainly by lower operating expenses, especially maintenance, and partly by reduced fuel expenses.
“To note, we continue to treat aviation as part of ongoing operations to maintain comparability with historical performance,” said MBSB.
Aviation revenue slipped slightly as softer Thailand tourism pushed average fares down amid a shift toward domestic travel.
Earnings before interest, tax, depreciation and amortisation (EBITDA) margin (+10.1 ppts), nevertheless improved, helped by a drop in cost per available seat kilometre (CASK),reflecting lower fuel and maintenance outlays.
Among non-aviation entities, AirAsia move lagged, with weaker revenue and EBITDA margin (-4.0 ppts) from lower seat sales due to competitive pricing and a shift to lower-yield domestic routes.
Number of transactions fell -6.4% year-on-year (yoy), while gross booking value declined -11.9% yoy. Overall revenue eased 2.4%yoy, while core net profit swung back into the black from a core net loss of -RM620.4 mil in 3QFY24.
Versus 2QFY25, aviation revenue slipped slightly as passenger numbers inched up, but average fares softened, while EBITDA margin (+2.1 ppts) improved on lower maintenance costs (+20.0% yoy). —Dec 2, 2025
Main image: wiser.my
