AirAsia Group (AAGB) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 rose 1% year-on-year to RM803.5 million, supported by a robust fare environment and strong ancillary revenue, which grew 5% YoY to RM280.6 million.

• Net operating profit increased fourfold to RM12.0 million, while net profit was RM27.8 million, down from RM121.6 million last year due to a prior one-off forex gain.

• ASK capacity grew 9% YoY, with aircraft utilization reaching 16 hours per day and passenger load factor steady at 82%, despite a 5% YoY decline in passenger traffic.

• Ancillary revenue per passenger increased 11% YoY to RM273, driven by improved duty-free and onboard offerings.

Financial highlights

• CASK fell 9% YoY to 12.68 sen, aided by lower fuel prices and a stronger ringgit.

• Total operating expenses improved 1% YoY to RM713.2 million, with lower fuel and lease expenses offsetting higher marketing spend.

• EBITDA for Q3 2025 was RM91.7 million, up from RM76.2 million in the previous quarter.

• Earnings per share for Q3 2025: 6.2 sen (Q3 2024: 27.2 sen).

• Cash and cash equivalents at period end: RM80.96 million.

Outlook and guidance

• Forward bookings for Q4 are strong, with expectations for higher load factors and fares, and focus on peak winter and holiday demand in Japan, Korea, Central Asia, and Australia.

• Fuel and FX conditions are expected to remain favorable, with Brent crude forecasted at $62–63/bbl.

• Network expansion and fleet reactivation planned for 2026, including induction of four A321LRs and reactivation of the final A330.

• New routes launched to Tashkent and Istanbul, with further frequency increases planned for Australia and East Asia.

• Internal FY2025 targets: revenue RM3.5–4.0 billion, EBITDA RM0.5–0.55 billion, 4.4 million passengers, 18 operational aircraft by year-end.