Air Asia (2630) Q4 2024 earnings summary

Executive summary

• Net revenue for 2024 reached NT$5,200,056 thousand, up NT$336,374 thousand or 7% year-over-year.

• Net income increased to NT$140,609 thousand in 2024, a rise of NT$83,489 thousand compared to 2023.

• Gross margin improved to 8.9%–9% in 2024 from 6.9%–7% in 2023.

• EPS for 2024 was NT$0.67, up from NT$0.31 in 2023.

• Commercial aircraft revenue share rose to 14% in 2024, while military aircraft & helicopter declined to 86%.

Financial highlights

• Operating margin increased to 3.8% in 2024 from 2.0% in 2023.

• Operating profit reached NT$197,514 thousand, up from NT$95,211 thousand year-over-year.

• ROE reached 4.1% in 2024, compared to 2.1% in 2023.

• Total assets grew to NT$5,766,857 thousand, with equity at NT$3,469,405 thousand as of December 31, 2024.

• Dividend payout ratio for 2024 was 75%.

Outlook and guidance

• IATA forecasts global air passenger demand to grow by 8% in 2025, with Asia-Pacific accounting for over 25% of ground handling revenue.

• MRO market expected to grow at a 2.7% CAGR from 2025 to 2035, driven by aging fleets and narrow-body aircraft dominance.

• Adoption of new IFRS standards is not expected to have a significant impact.

• The company continues to focus on capital structure optimization and maintaining stable dividend policy.