Capital A exits PN17, closing six-year restructuring chapter

Capital A Berhad has been uplifted from its PN17 classification, effective 9am on Wednesday (20 May 2026), following approval from Bursa Malaysia Securities Berhad.

The move comes after the company completed its regularisation plan, marking the end of a six-year restructuring process and setting the stage for its next phase of growth.

A key milestone in the turnaround was a series of strategic actions completed in January 2026. This included the disposal of its aviation businesses to AirAsia X Berhad, the distribution and listing of AirAsia X shares to eligible shareholders, and a High Court-approved capital reduction of approximately RM5.5 billion.

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The company said these measures restored its shareholders’ funds to a positive position. It also highlighted that, excluding aviation operations, its businesses have delivered five consecutive quarters of profitability from Q1 2025 to Q1 2026.

With the upliftment, AirAsia airlines now operate under a consolidated airline platform, while Capital A shifts its focus fully to its non-aviation portfolio. This includes Asia Digital Engineering, Teleport, AirAsia MOVE, AirAsia Next, and Santan.

Capital A said it will continue to update the market on operational progress across its businesses.

“This is the best news all of us at Capital A could have asked for. The past six years have been incredibly tough and at times, there were moments where many thought we would not make it through. But we never gave up. We protected jobs, transformed Capital A into a much stronger and diversified ecosystem, and focused relentlessly on growth," said Tony Fernandes, CEO of Capital A.

"Just as the world started recovering from Covid, we’re faced with another wave of uncertainty from global conflicts, fuel prices and supply chain pressures. But Capital A companies are less affected by fuel volatility, and this goes to prove that our strategy of creating a resilient, independent group of non-aviation companies was on point," he added. 

Fernandes said that Bursa Malaysia’s decision to uplift the PN17 status marks a deeply significant milestone for the company and its “Allstars”, reflecting the discipline and resilience behind the execution of its regularisation plan, said group CEO Tony Fernandes.

He added that the achievement underscores the collective effort required to complete the turnaround, expressing appreciation for Bursa Malaysia’s support throughout the process.

Fernandes also acknowledged the role of advisors and partners involved in the restructuring, including BDO, RHB, EY, and legal counsel Christopher Lee Ong, crediting their expertise and commitment in guiding the company through a complex process.

In tandem, Effendy Shahul Hamid, deputy CEO of Capital A said emerging from PN17 marks the beginning of a new phase for the group, which now operates as a portfolio of five core businesses positioned for growth.

He said Asia Digital Engineering (ADE) is delivering a record year, while logistics arm Teleport continues to expand its regional network. Both units, he noted, have secured fresh funding to support their growth plans.

"AirAsia MOVE will plug into the airline’s coordinated airline network to grow ancillary, retail and trip planning, making it smarter and more personal; while AirAsia Next unlocks the power of the iconic AirAsia brand through loyalty, AI and data across the entire ecosystem. Santan is also preparing to scale beyond inflight meals into a true Asean grab-and-go food brand," Effendy added. 

He said the group has come through a tightly restricted period with financial discipline and resilience, and is now better positioned for execution. With renewed focus on technology, long-term thinking and operational speed, he noted that the group aims to demonstrate clearer value creation across its portfolio going forward.

The results underscore the improved financial footing following the group’s restructuring, offering a clearer view of its continuing operations after the aviation carve-out.

For the first quarter ended 31 March 2026, Capital A posted revenue of RM767 million and net operating profit of RM28 million, alongside a profit after tax of RM25 million. The group also reported shareholders’ funds of RM598 million and total equity of RM568 million, while net cash flow doubled to RM214 million, signalling stronger financial stability.

Performance was driven by its five core businesses — Asia Digital Engineering, Teleport, AirAsia MOVE, AirAsia Next and Santan — as the group delivered what it described as its first “clean” quarter of results post-restructuring, reflecting a more streamlined and focused operating structure.

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