AirAsia Group (AAGB) Q4 2024 earnings summary

Executive summary

• Revenue for FY 2024 reached RM3.2 billion, up 28% year-over-year, driven by passenger growth and strong ancillary revenue per passenger at RM253; Q4 2024 revenue was RM872.3 million, up 7% year-over-year.

• Full-year net profit was RM229.1 million, with Q4 2024 net profit at RM22.6 million; EBITDA for Q4 2024 surged nearly 75% year-over-year to RM119.6 million, though FY 2024 EBITDA declined 30% due to a prior-year provision reversal.

• Carried close to 4 million passengers in FY 2024, with load factor at 83% for the year and 82% in Q4 2024.

• Shareholders approved the acquisition of Capital A Berhad's aviation business in October 2024, with completion in progress.

• Advanced sustainability performance, achieving record ESG scores and FTSE4Good listing.

Financial highlights

• Scheduled flights revenue increased 22% year-over-year to RM2.0 billion in FY 2024; ancillary revenue surged 49% to RM1.0 billion, with ancillary revenue per passenger at RM254 for the year and RM268 in Q4 2024.

• Freight services revenue rose 23% year-over-year to RM186.4 million for FY 2024.

• Q4 2024 EBITDA was RM119.6 million, up nearly 75% year-over-year; full-year EBITDA was RM461.2 million, down from RM661.7 million in 2023.

• Cost per ASK improved to 12.99 sen in Q4 2024 from 15.71 sen in Q4 2023, maintaining the lowest cost among peers.

• Cash and cash equivalents at year-end: RM174.8 million.

Outlook and guidance

• FY 2025 internal targets: revenue RM3.5–4.0 billion, EBITDA RM0.5–0.55 billion, net operating margin 4.5–5.5%, and 19 operational aircraft by 1H 2025.

• Full fleet reactivation and additional aircraft arrivals expected in 1H 2025.

• Network expansion planned into China, Africa (Nairobi), South Asia, and Central Asia, with focus on profitable routes and increased connectivity.

• Maintenance costs expected to drop by 50% in 2025 as fewer C checks and no landing gear changes are planned.

• Assumes stable fuel prices (USD90/barrel) and exchange rate (USD:MYR 4.4) for 2025.