AirAsia Group (AAGB) Q2 2025 earnings summary

Executive summary

• Net profit reached RM35.22 million in Q2 2025, a significant year-over-year increase driven by favorable forex gains and lower jet fuel prices.

• Revenue was RM660.8 million, down 1% year-on-year due to softer fares, lower freight yields, and seasonality, but offset by higher ancillary revenue and increased seat capacity.

• Passenger load factor remained strong at 83%, with a 6% year-on-year increase in passengers carried to over 935,000.

• Seat and ASK capacity expanded 10% year-on-year, supported by network expansion and more operational aircraft.

• Ancillary revenue contributed 36% of total revenue, up 10% year-on-year, with RPP increasing 4% to RM257.

Financial highlights

• EBITDA rose 31% year-on-year to RM76.2 million, driven by lower fuel prices and reduced lease expenses.

• Net operating profit improved 26% year-on-year to RM1.38 million.

• Total operating expenses declined 5% year-on-year, mainly due to lower fuel costs and currency appreciation.

• CASK reduced by 13% year-on-year to 12.05 sen; CASK ex-fuel rose 9% to 6.38 sen.

• Average base fare declined to RM405, down year-on-year but still above pre-COVID levels.

Outlook and guidance

• Further network expansion planned, including new routes to Tashkent and Istanbul, with operational fleet size projected to reach 19 aircraft by December 2025.

• Forward bookings for Q3 and Q4 are expected to maintain strong load factors and revenue growth.

• Maintenance costs expected to decrease in Q3 due to fewer scheduled checks, with a slight uptick in Q4.

• Internal FY25 targets: 4.4 million passengers, RM3.5–4.0 billion revenue, EBITDA RM0.5–0.55 billion, NOP margin 4.5–5.5%.

• NOP guidance for the year is RM157–220 million, with 33% achieved year-to-date.