KUALA LUMPUR (May 31): Capital A Bhd posted its second straight quarterly net profit of RM57.10 million in the first quarter ended March 31, 2023, as it benefitted from the ongoing resurgence of air travel demand.

The current quarter's net profit is also due to it recording a share of profit of RM13.50 million from associates, as opposed to a share of loss of RM143.12 million previously and recognised foreign exchange gain of RM44.77 million, versus a forex loss of RM52.73 million, thanks to the appreciation of local currencies against the US dollar.

Compared to a year ago, the group incurred a net loss of RM903.79 million. The loss was attributed to higher operation costs on fuel and maintenance, as well as a share of loss of RM143.1 million from an associate, following the completion of the restructuring and recapitalisation plan of the associate, its previous filing showed.

Earnings per share were 1.4 sen in 1QFY2023, against a loss per share of 22.30 sen a year before.

Meanwhile, quarterly revenue more than tripled to RM2.23 billion, from RM811.78 million year earlier.

Looking ahead, the group anticipated high fares to persist.

It also aims to reactivate all its aircraft by the end of the third quarter of 2023.

“As we reactivate more aircraft, we would be able to remove dead costs and improve the overall financial position,” it added.

Seizing the opportunity from the reopening of the China market in March 2023, the group said both AirAsia Malaysia and AirAsia Thailand, which have previously enjoyed considerable financial benefits from China routes, have been prioritising deploying capacity to China to capitalise on the pent-up demand.

The board expects the group to perform better than the previous year.

Shares in Capital A closed down 1.5 sen or 1.89% to 78 sen, giving the group a market capitalisation of RM3.25 billion.