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AirAsia Aviation Group Delivers Robust 3Q Growth for Capital A


AirAsia Aviation Group Delivers Robust 3Q Growth for Capital A

The financial restructuring between the AirAsia Group airlines and parent company Capital A is moving towards a successful conclusion, but in the meantime, the group's operating carriers have delivered an excellent third-quarter 2024 result.

✕ Remove Ads Solid set of numbers for Capital A

On Thursday, Capital A Berhad (Capital A) announced its operating statistics for its aviation, Capital A Aviation services, Teleport and MOVE Digital segments for the third quarter of the Financial Year 2024 (3Q2024). While all segments are performing well, Capital A CEO Tony Fernandes believes they will do better as stand-alone entities, starting with the divesture of the aviation group to AirAsia X.

Photo: GingChen | Shutterstock Related Shock Move: Capital A Sells AirAsia Airlines to AirAsia X

Tony Fernandes is splitting up Capital A and disposing of all its aviation businesses to AirAsia X, although the shadow of PN17 seems behind it.

3 The five AirAsia airlines carried nearly 16 million passengers in 3Q

The AirAsia Aviation Group includes AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia, AirAsia Philippines and AirAsia Cambodia, and is collectively known as AirAsia. The three months ending September (3Q) are typically quieter for Asian airlines, but despite that, AirAsia delivered robust operational performance by maintaining a high load factor of 89% in 3Q2024.

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Passenger numbers increased by 8% year-on-year to 15.9 million, compared to 14.7 million in the same period last year. The Group's airlines did a remarkable job of keeping capacity and demand in harmony, with both available seat kilometers (ASK) and revenue passenger kilometers (RPK) increasing by 8% in the quarter.

During the quarter, the Group added three new Airbus A321neo aircraft and reactivated three other aircraft, bringing its total activated fleet to 202 out of 216 aircraft. The standout carrier was AirAsia Cambodia, the youngest airline in the Group, which grew passenger traffic by 62% quarter-on-quarter from 25,861 to 41,800 at a 53% load factor with just two Airbus A320 aircraft.

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International services also grew strongly in 3Q, and with passenger growth outpacing capacity growth, load factors improved, such as on routes to China and India, which both recorded a year-to-date load factor of 89%. In the domestic segment, AirAsia Malaysia has resumed operations at Subang Airport (SZB), launching flights to Sabah and Sarawak, which are reporting load factors of 92% since their launch in late August.

A look at each of the Group airlines

AirAsia Malaysia carried 7.58 million passengers in 3Q2024, a year-on-year (YoY) gain of 13% and increased its load factor from 88% to 89% this year. The airline operated 46,304 stages at an average stage length of 1,279 kilometers (795 miles) and, at the end of the quarter, was operating 78 aircraft, compared to 69 in 3Q2023.

✕ Remove Ads Related AirAsia Thailand Expands In India And Thanks On Time Customers

AirAsia Thailand is adding two new destinations and has thanked its customers who get to the gate on time.

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AirAsia Thailand grew passengers by 7% year over year in the third quarter, carrying 4.88 million compared to 4.55 million last year. It recorded a load factor of 90% and flew 29,655 stages at an average length of 1,096 kilometers (680 miles) with 50 aircraft, up from 46 in 3Q2023.

Photo: Perth Airport

An anomaly was in Indonesia, where AirAsia Indonesia carried 6% fewer passengers compared to 3Q 2023, carrying 1.66 million compared to 1.77 million last year. The saving grace was that it also reduced capacity by 7%, so the passenger load factor remained unchanged at an excellent 89%. The airline's 25 Airbus A320s flew 10,330 stages at an average length of 1,475 kilometers (916 miles).

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AirAsia Philippines' traffic increased by just 3% from 1.64 million in 3Q2023 to 1.68 million this year at a load factor of 88%, four percentage points lower than the previous quarter, as capacity increased by 1%. The airline flew 10,678 stages at an average length of 910 kilometers (565 miles) and operated 15 aircraft at the end of the quarter.

Find more news about Asian aviation here.

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In some respects, AirAsia Cambodia is still finding its feet, but in 3Q2024, it carried 41,800 passengers compared to 25,861 in 3Q2023. The airline is quickly establishing itself as a viable option in the region, and in the quarter, it operated 439 stages at an average length of 536 kilometers (333 miles) with just two Airbus A320s.

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