China Airlines Ltd (CAL, 中華航空) yesterday said it is optimistic about next year’s business outlook, as the airline continues to renew its fleet on expectations that global passenger traffic would maintain steady growth and air cargo demand would remain strong.
From next year to 2028, the airline is to welcome a new Boeing Co 787 fleet — 18 787-9 and six 787-10 passenger aircraft — to cover regional and medium to long-haul destinations, CAL chairman Hsieh Shih-chien (謝世謙) said at an investors’ conference in Taipei.
The airline would also continue to introduce Airbus SE 321neo passenger planes and Boeing 777F cargo jets, Hsieh said.
Photo: Wang Yi-hung, Taipei Times
With the phase-out of the Boeing 744F freighter fleet and the full deployment of the 777F cargo jets, along with the addition of 787 belly cargo capacity, CAL aims to further enhance its freight capacity and revenue, the company said in an earnings report.
However, the airline said its passenger capacity has only reached 80 percent of pre-COVID-19 pandemic levels, causing ticket prices to rise by 20 to 30 percent. Moreover, the international aviation industry’s supply chains are still way behind on their ability to manufacture new planes, it said.
Hsieh said this situation might continue for another three years and would not ease up until 2027 at the earliest.
“Delivery delays might become the norm,” he said.
Supply and demand would continue to be tight next year, which would further drive up ticket prices.
“As long as passenger traffic remains strong, the overall outlook is still positive,” he said.
Global passenger traffic has been on a steady climb since April 2021, with the International Air Transport Association (IATA) projecting an annual 11.6 percent increase in passenger traffic this year. The Asia-Pacific region is expected to achieve double-digit growth in passenger traffic this year and next, leading other regions, the IATA forecast.
Meanwhile, global trade growth, economic recovery and constraints on maritime shipping capacity have driven continued growth in air cargo demand, with international air cargo volume this year likely to grow 5 percent compared with last year, the IATA said in June.
CAL yesterday reported that net profit in the first three quarters reached a record NT$10.37 billion (US$318.6 million), up 50.3 percent from a year earlier. Earnings per share increased 48.7 percent to NT$1.71 year-on-year, it said. Cumulative revenue over the period totaled NT$150.93 billion, up 9.7 percent.
The airline’s passenger revenue continued to exceed cargo revenue and accounted for 64.37 percent of the total, CAL said, adding that passenger revenue during the first three quarters grew 12.2 percent year-on-year to NT$97.15 billion and cargo revenue edged up 1 percent to NT$42.86 billion.
Passenger and cargo revenue maintained steady growth, especially in Northeast Asia, Southeast Asia and long-haul flights, CAL said.
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