China Airlines Co (華航), Taiwan's largest carrier, expects next year's profit to match this year's target of NT$1.37 billion (US$40 million) as the addition of new planes to the fleet helps trim costs.
"Average costs next year will decrease 5 percent through refinancing, fuel contracts and exchange-rate swapping," said Christine Tsung (宗才怡), China Airlines president, in an interview at an Association of Asia Pacific Airlines meeting.
China Airlines last month more than halved its net income forecast for this year from its previous target of NT$3 billion, blaming the reduction on a slump in demand in the wake of the Sept. 11 attacks on the US.
Tsung said revenue from passengers would total NT$44.5 billion this year, down from an earlier forecast of NT$44.7 billion.
Next year's cost reductions will come as the addition of as many as five Boeing Co jetliners, including two 737-800 single-aisle planes and three 747-400F cargo jets, helps reduce fuel costs.
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