KUALA LUMPUR (Aug 29): Capital A Bhd (KL:CAPITALA) on Thursday posted a much larger net loss for the second quarter mainly due to higher foreign exchange losses and aircraft depreciation charges.

Net loss for the three months ended June 30, 2024 (2QFY2024) widened to RM454.18 million, Capital A said in an exchange filing, marking its fourth consecutive quarter in the red. That compares to a net loss of RM91.55 million in 1QFY2024 and net profit of RM646.28 million in 2QFY2023.

Capital A incurred RM403.9 million in foreign exchange losses and RM175 million in aircraft depreciation charges during the latest quarter. About 20% of the fleet was not in operation during the quarter and the company has 165 operating aircraft as at the end of June.

Quarterly revenue, however, rose 54% year-on-year to RM4.86 billion as compared to RM3.15 billion a year ago, thanks to the strong recovery from domestic and international travel, which offset the higher fuel expenses and maintenance costs.

Capital A is now aiming to exit the Practice Note 17 (PN17) status by the first half of 2025, said its chief executive officer Tan Sri Tony Fernandes. “We are confident in the growth and value that Capital A companies will deliver in the coming quarters,” he said.

Aviation segment contributed 87% of the revenue, while the remaining 13% came from logistics, digital, and other businesses.

Revenue at the mainstay business rose 60% to RM4.61 billion in 2QFY2024 from the same quarter last year, with earnings before interest, taxes, depreciation and amortisation (Ebitda) rising to RM707.1 million from RM404.7 million a year earlier.

At the logistics arm Teleport, Ebitda stood at RM2.50 million, while revenue jumped 35% to RM225.2 million in 2QFY2024 on the back of higher volumes of parcels delivered.

The company did not declare any dividends for the latest quarter.

For the first half ended June 30, 2024, Capital A recorded a net loss of RM545.73 million from a net profit of RM703.38 million in 1HFY2023. Meanwhile, revenue surged 77.87% to RM10.10 billion, from RM5.68 billion in the same period last year.

Fernandes said that the company will focus on growing and optimising synergies among its companies once the disposal of the aviation business is completed by year end.

“[This will be done] either through better collaboration and structure or the potential of morphing MOVE Digital into two separate groups — the OTA (online travel agency) business and a fintech group,” he noted. “We will also aggressively acquire more third-party businesses.”