CAPITAL A FOURTH QUARTER 2023 AND FULL FINANCIAL YEAR 2023 OPERATING RESULTS

January 24, 2024 Nur Alya Zulaikha Khairon Anuar -

Aviation: Sustained high load factor at 88% leading to flying nearly 57 million passengers in FY2023, up 23 million YoY

MOVE Digital: Strong finish for airasia MOVE as it hits 15 million Average Monthly Active Users in FY2023, BigPay's annual carded users growth persists at 14% YoY

Teleport: Nearly 200,000 tonnes moved in FY2023, YoY increase 88% and daily parcel delivery surpassing 130,000 parcels in 4Q2023

Aviation Services: Riding high on aviation surge, ADE, Santan and GTR continue to thrive as travel activities increase

KUALA LUMPUR, 24 January 2024 - Capital A Berhad (“Capital A” or the “Group”) has announced operating statistics for its aviation, digital, logistics and aviation services segments for the Fourth Quarter ("4Q2023") and Full Year of the Financial Year 2023 (“FY2023”).

AIRASIA AVIATION GROUP

The airlines – AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia, and AirAsia Philippines (collectively the “Group”) – have consistently recorded load factors in the high 80s every quarter, leading to a robust Group load factor of 88% for FY2023 - a Year-on-Year (“YoY) increase of 5 percentage points (“ppts”). This achievement signifies the return of strong travel demand, which was aligned to the Group’s relentless effort in injecting capacity back into the market and reinstating the route network. As more capacity is made available, operations continue to stabilise and customer experience improves.

Closing the year with 162 operational aircraft, overall the Group carried nearly 57 million passengers for the entire year. Compared to pre-Covid levels, the aviation group passenger carried recovery reached 77% on the back of 74% capacity recovery. Leading the way is the domestic recovery which stands at 82%, while the international recovery is at 72%. Within the Group, AirAsia Indonesia and Thailand experienced the most substantial recovery at 90% and 85%, respectively, followed by AirAsia Malaysia and Philippines at 72% and 77%.

MOVE DIGITAL

airasia MOVE (formerly known as airasia Superapp) continues to set new milestones, achieving a peak of close to 17 million in its average Monthly Active Users (“MAU”) during 4Q2023, a 48% YoY growth. The app maintained an average of 15 million MAU throughout the year 2023, a 42% YoY surge.

In tandem with the increased users, airasia MOVE achieved a new record for number of transactions, totaling 9.2 million in 4Q2023. This contributed to a cumulative 32.5 million transactions for the entire year, reflecting a 75% growth compared to the previous year.

Gross Booking Value (“GBV”) also showcased substantial progress across all business segments, exhibiting a commendable 90% YoY growth.

Travel: GBV improved 110% YoY against FY2022, driven by the increase in flight bookings fueled by strong recovery in travel demand.
Ride-hailing: Annual GBV grew by 54% YoY, bringing the total number of rides completed in FY2023 to 5.4 million. Klang Valley continues to be the primary location for utilising rides services.
airasia rewards and other businesses: Posted GBV growth of 42% YoY for FY2023, as travellers are back active in earning and utilising points across the ecosystem.

BigPay saw an uptick in the annual carded users, recording 14% increase YoY to nearly 1.5 million and Gross Transaction Value (“GTV”) growth of 28% YoY against FY2022.

Payment: Grew 6% annually, of which closed-loop payment saw a 60% growth YoY owing to the close collaboration with airasia MOVE.
Remittance: Grew by 86% YoY in FY2023, driven by a 146% and 21% YoY increase in domestic and international transactions during the year with transaction sizes trending up.
Lending: Loan disbursement grew by 159% YoY, owing to the utilisation of alternative data in credit scoring methodology to identify low risk segments within its loan application pool.
Marketplace: Overall GTV recorded a 27% YoY growth in FY2023, attributed to the continued strong take-up rate of mobile prepaid top-up transactions.

LOGISTICS

Teleport delivered a strong performance across its core operational metrics in both the quarterly and full-year results.

Cargo segment: 4Q2023 saw 60,565 tonnes delivered, up 94% YoY while the total tonnage moved for the year reached nearly 200,000, reflecting 88% growth compared to the previous year. Throughout the year, the utilisation rate saw an uptick of 2 ppts to 14% (vs 12% in FY2022). This is due to the significantly expanded capacity during the year resulting from the return of international flights, the induction of Teleport’s first two dedicated A321F freighter aircraft, as well as Teleport’s continued effort in forging close strategic third party airline partnerships.
Delivery segment: The segment recorded the highest number of parcels delivered in 4Q2023, reaching 12 million parcels, an increase of 279% YoY. Daily parcel deliveries also surpassed 130,000 for the first time in 4Q2023. This was supported by increased volume by new customers during the festive season. Cumulatively, the segment delivered 29.9 million parcels in 2023, demonstrating a 275% YoY growth.

AVIATION SERVICES

Asia Digital Engineering (“ADE”)
The Maintenance, Repair and Overhaul (“MRO”) service provider, ADE concluded the year strong, capitalising on the increased flight activity leading to increased demand for maintenance checks. ADE completed 50% more base maintenance checks in FY2023 compared to prior year, while the overall full year performance for line maintenance saw a significant 92% surge in the number of checks against FY2022.

Santan
The Group’s inflight service provider, Santan recorded 19.6 million units sold in FY2023, up by 114% YoY.

Perishable and non-perishable food and beverages: Sold 19.1 million units during the year, reflecting a 115% YoY growth aligned with increased international flight frequencies and passenger volume.
Duty-free and merchandise products: Over 500,000 units sold in FY2023 which delivered 90% YoY growth, attributing to our competitive pricing of the products.
Frozen meal segment: The strategic collaboration with a leading retailer initiated in mid-October yielded encouraging results, with sales reaching nearly 200,000 units.
Restaurant and cafe segment: Over a million units sold for FY2023, driven by increased foot traffic at the restaurant and cafe areas alongside the establishment of new kiosks at various sites.

ASSOCIATE COMPANY

Ground Team Red (“GTR”)

The Group’s affiliated ground handling services company, GTR sustained commendable growth:

Flight handling: Underpinned by the ongoing resurgence of travel, nearly 144,000 flights were handled for the whole of last year.
Passenger handling: Handled over 22 million passengers for the full year, attributable to robust return of passenger traffic since the first quarter of the year.
Cargo handling: Handled over 86,000 tonnes throughout the year, a 63% increase YoY primarily attributed to expanded flight frequencies and the induction of Teleport’s freighters.