Malaysia-based Capital A’s logistics arm Teleport has seen its quarterly revenue increased by 35 percent year on year to MYR 225 million ($47.5 million) in the second quarter.
Capital A said in a statement on Thursday that the growth was driven by a 2.15 times year on year increase in eCommerce parcel volumes delivered, bringing Teleport year to date revenue to reach nearly MYR 450 million ($95 million).
Over 15.3 million parcels were delivered this quarter, leading to more than 30 million parcels delivered year to date, surpassing the total parcels delivered in 2023.
However, Teleport’s revenue has been flat quarter-to-quarter due to a lack of growth in AirAsia’s belly space since the fourth quarter of 2023, and a lower mix of high-demand cargo routes operated by the airline.
In terms of earnings before interest, taxes, depreciation, and amortization (EBITDA), Teleport delivered MYR 2.5 million ($529,000) in the quarter, against the backdrop of continued normalizing industry yields and challenges faced in freighter maintenance and reliability, which reduced profits year to data by approximately MYR 14 million ($3.25 million).
Freighter maintenance and reliability issues have since been resolved in the second quarter, and it is not expected to recur.
“We set ourselves the ambitious goal to deliver 2 million parcels daily by the end of 2025,” said Pete Chareonwongsak , Chief Executive Officer of Teleport.
According to him, the firm’s focus on e-commerce, and building a unique network through deep partnerships with over 40 airlines like Etihad Cargo, Turkish Cargo, and Pakistan International Airlines will be key to reaching this target and meeting the rising air cargo and e-commerce demand in the Asean region and beyond.
“By collaborating with other airlines, we’re expanding our network — already the largest air logistics network in Southeast Asia,
“This allows us to maximize existing cargo utilization and increase capacity on key routes without adding more aircraft or incremental emissions as we grow,” he said.
Operationally, he said the firm has successfully resolved challenges around freighter maintenance and reliability faced in the first half of 2024.
“Freighter availability improved significantly to 98 percent in July, up from 67 percent in the first quarter of 2024 and we do not anticipate any recurrence of the same issues,
“As AirAsia restores its full capacity, moving forward we look forward to improved coordination to achieve better airline-Teleport collaboration and therefore expect healthier margins contributing to our EBITDA in the coming quarters,” he added.