Capital A Bhd, the parent company of AirAsia Aviation Group, recorded revenue growth in 2023 and 2024 coupled with surging greenhouse gas (GHG) emissions as more flights are returning to service to boost customer confidence, according to Maybank Investment Bank Bhd (Maybank IB).

In 2023, the company's revenue totaled at RM14.8 billion and analysts have projected its 2024 revenue at RM20.3 billion.

In alignment with the nation's net zero goal by 2050, Capital A has adopted a new technology that produces dual-functionality ground power units capable of cutting fuel consumption up to 90%, an indication that the aviation operator has plans to ease emissions in the coming years.

The research house has maintained Capital A's ESG score at 59/100 based on the company's disclosures in its 2023 Sustainability and Annual Reports, but has downgraded Capital A from BUY to HOLD with a target price of RM1.00.

As at 10:24am on Oct 30, Capital A's shares traded at RM0.98, down one sen from its settlement price of RM0.99 recorded on Tuesday.

On a positive note, improvement can be seen in gender equality as women continue to be better represented in managerial roles, rising to 22% in 2023 from 16% in 2020.

Also, Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT) recovered in 2023 after suffering a sharp fall the previous year, owing to more aircraft returning to service and fewer flights cancellation. Both NPS and CSAT are expected to recover further.

Maybank IB opines that Capital A should appoint more independent non-executive directors (INED) and female directors to the company's Board of Directors (BOD).

Currently, INEDs account for 40% of Capital A's board while no female has been appointed board member as yet, quite incidentally a situation exacerbated by the demise of Surina Binti Shukri, an INED, on 29 Feb 2024.

Malaysian Code on Corporate Governance recommends that companies have ≥50% INEDs and ≥30% women directors on their BOD.