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EVA lowers pretax profit forecast to NT$1.4 billion

EVA Airways Corp (長榮航空) has lowered its pretax profit estimate for this year to NT$1.4 billion from NT$2.1 billion. It is Taiwan's second-largest airline's second revised forecast this year after one in in March as cargo sales are falling in a slowing economy.

Orders for Taiwan-made electronics and other goods fell 14 percent in May from a year earlier to US$11.5 billion, the biggest drop since January 1998, according to the Ministry of Economic Affairs.

Exports, mostly shipped by air, are falling as slowing world growth means overseas customers are buying fewer computer chips and other electronics.

Orders from US customers fell 15 percent in May to about US$3.6 billion after falling 8.8 percent in April.

The airline said in March it expects this year's profit to fall 14 percent to NT$2.1 billion from NT$2.5 million in 2000.

EVA Airways expects overall sales to fall to NT$57.8 billion, down from its March forecast of NT$59.3 billion. Earlier in March, the airline said it expected sales to rise 8.7 percent to NT$59.3 billion from NT$54.5 billion a year ago as it adds capacity.

EVA Airways shares fell 0.5 percent yesterday to NT$9.95.

Cargo sales for May fell 17 percent to NT$1.5 billion from NT$1.8 billion in the same period a year ago. For the first five months of the year, cargo sales fell 8.6 percent to NT$8.2 billion from NT$9 billion a year ago.

Passenger sales for May totaled NT$2.3 billion, unchanged from a year ago. For the first five months, passenger sales rose 9.8 percent to NT$12.1 billion from NT$11.1 billion from the previous year as the airlines started new flights to Tokyo and Sapporo in September and also increased its seats on the route to 3,000 from 2,000 in the fourth quarter of last year.

EVA Airways filled 74 percent of its available passenger seats in the first five months of the year, almost unchanged from 75 percent in the year-earlier period. It filled 68 percent of its available cargo space, down from 80 percent in the first five months of 2000.
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