EVA Airways Q3 profit dives to US$41m on back of weak cargo demand
TAIWAN's EVA Airways Corp's third quarter net profit halved to NTD1
TAIWAN's EVA Airways Corp's third quarter net profit halved to NTD1.27 billion (US$41.6 million) from NT$2.59 billion a year earlier, after cargo volumes weakened and the lingering effects of work stoppages took their toll.
The airline attributed the 3.9 per cent drop in revenue to NTD45.52 billion to weak air cargo demand amid the ongoing US-China trade row and on the violent protests that have rocked Hong Kong for nearly six months.
Passenger revenue declined compared to the same period last year, as it did not fully resume normal flight schedules until July 20, after flight attendants launched strikes in late June, reported Taipei Times.
As a result, its available freighter tonne-kilometres (AFTK) dropped by 1.9 per cent in the first nine months of this year compared to the same period last year.
EVA, the airline arm of Taiwan's Evergreen Group, reported cumulative net profit of NTD3.21 billion for the first nine months of 2019, down 46.2 per cent from NTD5.98 billion a year earlier.
The carrier anticipates that cargo business momentum in the fourth quarter will outperform the first three quarters, as demand is likely to rise in the run-up to the Christmas holiday season, EVA president Clay Sun said.
Mr Sun gave an upbeat outlook for next year, when five new Boeing 787-10 aircraft will join the airline's fleet. The new airplanes will help improve the carrier's AFTK by eight per cent, he said.