THE two leading international taiwanese carriers, China Airlines (CAL) and EVA Airways (EVA Air), have both 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.
In a statement, CAL said its net profit in the first six months of this year hit a new high of TWD7.14 billion (US$220 million), according to Focus Taiwan.
The global airline industry's momentum from last year extended into the first six months of this year, and that momentum and an increase in its number of flights supported passenger revenue growth, the carrier said.
Revenue generated from passenger flights rose 17.01 per cent from a year earlier to TWD64.68 billion in the January-June period, with Northeast Asia, Southeast Asia and North America the top three sources of revenue during the period, according to CAL.
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, but the situation improved in the second quarter as demand picked up, boosting freight rates.
That led to a 19.98 per cent increase in cargo revenue from a year earlier in the first half of the year, the airline said.
CAL was also upbeat about its prospects in the second half and expected its number of flights to increase by 25 per cent in 2024, 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 777F cargo planes ordered set to join the fleet this year, the carrier said it is hoping to further capitalize on opportunities in the cargo charter flight market.
EVA Air said in a statement that its net profit during the January-June period hit a record high of TWD13.38 billion.
In the six-month period, revenue generated from its passenger flight division rose 17.9 per cent from a year earlier to TWD72.9 billion, while its cargo services revenue rose 17.4 per cent from a year earlier to TWD22.95 billion, EVA Air said.
The airline said cargo volume in the first half of the year rose 15.4 per cent from a year earlier, citing growing demand for AI applications, an increase in demand for space from Chinese e-commerce operators, and port congestion, which led some vendors to ship by air rather than sea.
Meanwhile, Taiwan's third international carrier, Starlux Airlines took another step toward being listed on the Taiwan Stock Exchange (TWSE) along with EVA Air and China Airlines.
Its shares are currently traded on the emerging market, but the TWSE announced earlier last week that it has approved Starlux's application to list its shares on the exchange, which Starlux said it intended to do by the end of this year.
Starlux turned a profit for the first time in 2023, when it posted a net profit of TWD149 million. In the first quarter of this year, its net profit totalled TWD620 million, beating the figures for all of 2023.
The carrier has not reported its first half earnings yet, but its consolidated sales for the six months rose 65 per cent from a year earlier to TWD16.33 billion, boosted by growing revenue from both passenger flights and cargo services.
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In a statement, CAL said its net profit in the first six months of this year hit a new high of TWD7.14 billion (US$220 million), according to Focus Taiwan.
The global airline industry's momentum from last year extended into the first six months of this year, and that momentum and an increase in its number of flights supported passenger revenue growth, the carrier said.
Revenue generated from passenger flights rose 17.01 per cent from a year earlier to TWD64.68 billion in the January-June period, with Northeast Asia, Southeast Asia and North America the top three sources of revenue during the period, according to CAL.
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, but the situation improved in the second quarter as demand picked up, boosting freight rates.
That led to a 19.98 per cent increase in cargo revenue from a year earlier in the first half of the year, the airline said.
CAL was also upbeat about its prospects in the second half and expected its number of flights to increase by 25 per cent in 2024, 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 777F cargo planes ordered set to join the fleet this year, the carrier said it is hoping to further capitalize on opportunities in the cargo charter flight market.
EVA Air said in a statement that its net profit during the January-June period hit a record high of TWD13.38 billion.
In the six-month period, revenue generated from its passenger flight division rose 17.9 per cent from a year earlier to TWD72.9 billion, while its cargo services revenue rose 17.4 per cent from a year earlier to TWD22.95 billion, EVA Air said.
The airline said cargo volume in the first half of the year rose 15.4 per cent from a year earlier, citing growing demand for AI applications, an increase in demand for space from Chinese e-commerce operators, and port congestion, which led some vendors to ship by air rather than sea.
Meanwhile, Taiwan's third international carrier, Starlux Airlines took another step toward being listed on the Taiwan Stock Exchange (TWSE) along with EVA Air and China Airlines.
Its shares are currently traded on the emerging market, but the TWSE announced earlier last week that it has approved Starlux's application to list its shares on the exchange, which Starlux said it intended to do by the end of this year.
Starlux turned a profit for the first time in 2023, when it posted a net profit of TWD149 million. In the first quarter of this year, its net profit totalled TWD620 million, beating the figures for all of 2023.
The carrier has not reported its first half earnings yet, but its consolidated sales for the six months rose 65 per cent from a year earlier to TWD16.33 billion, boosted by growing revenue from both passenger flights and cargo services.
SeaNews Turkey
