EVA Airways Corp (長榮航空) on Monday reported that a net loss in the second quarter narrowed from the previous quarter, as solid demand for cargo services helped offset a decline in passenger volume amid the COVID-19 pandemic.
The airline posted a net loss of NT$614 million (US$20.79 million), or losses per share of NT$0.13, compared with a net loss of NT$1.2 billion, or losses per share of NT$0.25, in the first quarter.
EVA reported earnings per share of NT$0.01 in the second quarter of last year.
As the pandemic continued to cripple the global airline industry, EVA’s consolidated sales fell 56 percent in the second quarter from a year earlier to NT$19.29 billion, with its revenue from passenger flights plunging 93.6 percent year-on-year to NT$1.52 billion, the company said in a statement.
However, the steep decline in passenger revenue was offset by a 137 percent annual jump in cargo services income to NT$14.34 billion in the second quarter, EVA said.
Analysts said that the airline benefited from robust demand for shipments of high-tech devices and personal protective equipment in the second quarter.
For the first six months of this year, EVA reported a net loss of NT$1.83 billion, or losses per share of NT$0.38.
Consolidated sales decreased 44 percent year-on-year, with revenue from passenger flights falling 59.6 percent from the previous year to NT$20.17 billion and revenue from cargo services climbing 70.7 percent to NT$20.72 billion.
EVA’s statement of a strong second-quarter increase in cargo revenue followed a similar report last week by China Airlines Ltd (CAL, 中華航空), which reported net profit of NT$2.46 billion, or earnings per share of NT$0.45, for the second quarter, recovering from a net loss of NT$3.77 billion, or losses per share of NT$0.69, in the first quarter.
Shares of EVA and CAL fell 1.35 percent and 1.79 percent to NT$10.95 and NT$8.24 respectively on the Taiwan Stock Exchange yesterday.
The declines were caused by investors locking in their gains from the previous session, when shares of EVA and CAL rose 3.74 percent and 4.61 percent respectively, dealers said.
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