AirAsia MOVE, the digital arm of Malaysia-based Capital A, saw its revenue for the second quarter of 2025 declined by 16 percent year on year.

Capital A said in a statement that this was due to share of AirAsia seats sold was low at 43 percent.

However, it highlighted that the revenue will improve by year-end.

Meanwhile, its Stays segment, continued to grow, with bookings rose 38 percent year on year — ensuring gross booking value (GBV) held steady at MYR 2.25 billion ($530 million) compared to a year ago.

Its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was also stable at 11 percent, owing to rigorous cost discipline.

“We’re disrupting the hotel-first online travel agencies (OTA) market with a value-first platform for budget travelers,

“The second quarter proved the strength of our model—users, hotels and ancillary revenue all grew despite tougher flight transactions,” AirAsia MOVE’s Chief Executive Officer Nadia Zahir Omer said.

With ongoing improvements in UX, personalization, content and payments efficiency, she said the firm is well-positioned to capture demand at lower cost and expand margins.

“We will also look to grow the share of AirAsia seats sold to 50 percent by year-end,

“Together, these initiatives are designed to deliver scalable, high-quality growth while keeping profitability at the core,” she added.

Capital A’s Chief Executive Officer also said Tony Fernandes that his goal for the next six months is to get all the firm’s aircraft back, grow Philippines and Indonesia, and return the share of AirAsia on MOVE to 60 percent, which will grow ancillary revenue.

“We are currently working on a rated bond and securing local debt to restructure our COVID-era financing, which has dragged our profits,” he added.

Meanwhile, Capital A’s logistics arm Teleport delivered MYR 255 million ($60.35 million) in revenue in the second quarter, a 13 percent year on year increase, driven by a 52 percent year on year growth in eCommerce revenue to MYR 87 million ($20.59 million).

Operationally, the company moved 31.6 million eCommerce parcels (+62 percent year on year) and 77,213 tons of cargo (+21 percent year on year).

Growth was enabled by a 2.8 times increase in air partner network capacity to capture more eCommerce demand, while leveraging the three airport infrastructure investments made in the last quarter for faster eCommerce processing.

This performance translated to MYR 24.6 million ($19.16 million) in EBITDA (+39 percent year on year), while greater adoption of value-added services expanded EBITDA margins to 9.8 percent – an improvement of 1.8 percentage points year on year.

This led to Teleport’s second consecutive quarter of positive net operating profit (NOP) at MYR 4 million ($3.12 million), a MYR 12 million ($9.35 million) year on year positive turnaround.

“In the second quarter, we proved the resilience of our hybrid asset-light model,

“Our partner network was instrumental in delivering a profitable quarter despite our freighter fleet operating at only 40 percent availability due to maintenance planning and unscheduled disruptions,” Teleport’s Chief Executive Officer Pete Chareonwongsak said.

With its full fleet now back online, he said the firm is doubling down on what works.

“We will combine our fully restored fleet with an even stronger third-party network, including new long-haul 747 capacity along high-yield routes to Europe, Oceania, and the Middle East, a strategy that will be fully unlocked by the planned close of our capital raise this quarter,

“We expect a strong third quarter, fueled by early peak season commitments from eCommerce clients and a continued improvement in value-added service adoption across our 900-plus customer base,” he added.

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