Mon, Aug 12, 2024 page12

• China Airlines, EVA Air report record-high profits

  A boom: The airlines saw a rise in international flights and demand for cargo services, with the latter attributed to AI needs and vendors opting to have items delivered by air

  • Staff writer, with CNA
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  China Airlines Ltd (CAL, 中華航空) and EVA Airways Corp (長榮航空) have reported their highest-ever net profit for the first half of the year amid a boom in international travel and growing demand for cargo services.

  The global airline industry’s momentum from last year extended into the first six months of this year. That momentum along with an increase in the number of flights supported passenger revenue growth, the two airlines said on Friday.

  CAL’s net profit in the first six months of this year hit a new high of NT$7.14 billion (US$220 million), resulting in earnings per share of NT$1.08, the airline said.

  

  Aircraft operated by China Airlines Ltd and EVA Airways Corp are pictured at Taipei International Airport (Songshan airport) on March 9 last year.

  Photo: CNA

  Revenue generated from passenger flights rose by 17.01 percent from a year earlier to NT$64.68 billion in the January-to-June period, with Northeast Asia, Southeast Asia and North America as the top three sources of revenue, CAL said.

  Cargo services were affected by high inflation, interest rate hikes and inventory adjustments in the industrial sector in the early part of the first quarter, the airline said.

  However, the situation improved in the second quarter as demand picked up, boosting freight rates and leading cargo revenue to rise 19.98 percent from a year earlier, for the first half of the year, it said.

  CAL was also upbeat about its prospects in the second half and said it expects its number of flights to increase by 25 percent this year, citing strong demand for passenger flights during the summer.

  Cargo services are also expected to continue to grow in the second half and with all 10 of its Boeing Co 777F cargo planes set to join the CAL fleet this year, the carrier said it is hoping to further capitalize on opportunities in the cargo charter flight market.

  EVA’s net profit during the January-to-June period also hit a record high of NT$13.38 billion, resulting in an EPS of NT$2.31, the airline said.

  In the six-month period, revenue generated from its passenger flight division rose 17.9 percent from a year earlier to NT$72.9 billion, while its cargo services revenue increased by 17.4 percent from last year to NT$22.95 billion, EVA said.

  EVA said cargo volume in the first half of the year rose 15.4 percent from a year earlier thanks to growing demand for artificial intelligence applications, an increase in space demand from Chinese e-commerce operators and port congestion, which led some vendors to have items delivered by air rather than sea.

  Separately, Starlux Airlines Co (星宇航空) last week won permission to list its shares on the Taiwan Stock Exchange and said it intended to make its main board debut by the end of this year.

  Starlux, which trades its shares on the Emerging Stock Board, turned a profit for the first time last year, with a net profit of NT$149 million and EPS of NT$0.08. It reported NT$620 million in net profit and EPS of NT$0.3 for the first quarter of this year.

  The carrier has not reported its first-half earnings yet, but its consolidated sales for the first six months rose 65 percent from a year earlier to NT$16.33 billion, boosted by growing revenue from passenger flights and cargo services.
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