EVA Airways Corp (長榮航空) yesterday said it maintains a positive outlook for its business next year as passenger demand remains robust and airfares are expected to stay high in the short term, while a booming expansion in e-commerce and the development of artificial intelligence and other emerging technologies would support air cargo demand.
However, persistent geopolitical tensions have led to soaring operational costs and high fuel prices, EVA said in a document released following its earnings conference, adding that ongoing supply chain issues and labor shortages also pose challenges.
In response, the airline said it would bolster its trans-Pacific network and implement flexible fleet deployment, such as increasing the frequency of flights to Seattle and deploying new cargo aircraft on its North American route.
Photo: CNA
The airline would also look to improve membership engagement and mileage usage programs to enhance customer loyalty, it said.
Other efforts — such as improved digital services, automated check-in services for all travelers and an upgraded online reservation system — are also necessary to create diversified and personalized products, it added.
EVA reported revenue of NT$53.26 billion (US$1.69 billion) in the July-to-September quarter, up 51.3 percent from the same period last year, while net profit surged 381.6 percent to NT$5.96 billion, or earnings per share (EPS) of NT$1.1.
In the first three quarters of the year, revenue totaled NT$146.3 billion, an annual increase of 48.3 percent, while net profit was NT$16.4 billion, up 156.6 percent year-on-year, or EPS of NT$3.05.
Passenger revenue in the first 10 months of the year rose 516.9 percent year-on-year to NT$111.6 billion, while cargo revenue decreased 58.9 percent to NT$32.8 billion as end-market demand remained weak and firms continued to deplete inventories, it said.
Nevertheless, passenger revenue exceeded pre-COVID-19-pandemic levels in 2019 by 33.8 percent, while cargo revenue was up 58 percent, EVA said.
“Passenger revenue has been steadily growing, and its share of total revenue is approaching 80 percent of pre-pandemic levels,” it said. “Despite the downturn in air-cargo demand, freight rates remain significantly higher than pre-pandemic levels, sustaining a relatively stable cargo revenue.”
EVA said its load factors — which measure how much of an airline’s passenger carrying capacity is used — in the first 10 months of the year averaged 83.3 percent, with the load factor of its long-haul business class service exceeding 90 percent, a record high, while average airfares grew more than 40 percent.
The airline said it is optimistic about passenger revenue in the near term, as Vietnam has significantly reduced visa fees and Thailand now offers visa-free entry for Taiwanese.
An anticipated lifting of restrictions on group travel to China in March is also expected to markedly boost the cross-strait tourism market, it added.
Regarding Japan, the most favored travel destination among Taiwanese, the airline has seen strong demand for passenger flights during the winter break from late January to mid-February next year, with over 90 percent of seats on Japan-bound flights having been booked, EVA president Clay Sun (孫嘉明) said at the conference.
"Travel agencies continue to ask for more seats," the state-owned Central News Agency quoted Sun as saying yesterday.
Meanwhile, EVA is scheduled to take delivery of its ninth Boeing Co 777F freighter jet next year as it aims to add cargo capacity to meet growing e-commerce demand, Sun said.
The airline also plans to take delivery of 18 Airbus SE 350-1000 wide-body passenger aircraft from 2026 to 2030 and 15 Airbus 321neo passenger jets between 2029 and 2032 as part of its aircraft replacement and capacity expansion plans, he said.
This story has been updated since it was first published to add EVA Airways Corp president Clay Sun's remarks.
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