AirAsia Group (AAGB) Q1 2025 earnings summary

Executive summary

• Revenue increased 3% year-over-year to RM940.1 million, supported by a 12% rise in passenger numbers and strong ancillary revenue per passenger.

• Net profit reached RM50.2 million, down from RM80.1 million in Q1 2024, despite higher operating costs from expanded operations.

• Passenger load factor remained steady at 83%, with Japan and Australia routes achieving 85–90%.

• The fleet expanded to 19 aircraft, with 18 operational and full deployment expected by mid-year.

• Strategic network adjustments included ramping up Almaty and suspending Nairobi to focus on higher-yield markets.

Financial highlights

• Revenue grew to RM940.1 million, driven by a 24% increase in ancillary revenue and 10% growth in freight services.

• EBITDA declined to RM119.1 million due to higher staff, airport, maintenance, and marketing costs.

• Net profit was RM50.2 million, with a margin of 5%, and total operating expenses rose 16% to RM822.9 million.

• Average passenger fare declined 15% year-over-year to RM550, while ancillary revenue per passenger rose 10% to RM277.

• Cash and cash equivalents at period end were RM69.1 million, down from RM174.8 million at the start of the quarter.

Outlook and guidance

• Focus on expanding network in high-demand, profitable regions, especially Central and South Asia.

• Full fleet deployment expected by mid-year, with 19 operational aircraft and further capacity ramp-up planned.

• Ancillary revenue expected to grow with new offerings and targeted marketing.

• Internal targets for FY25: 4.7 million passengers, RM3.5–4.0 billion revenue, EBITDA of RM0.5–0.55 billion, and NOP margin of 4.5–5.5%.

• Integration with Capital A Berhad's aviation business expected to unlock synergies and enhance network connectivity.