China Airlines to break even this month

China Airlines Co (CAL, 華航), the nation's biggest air carrier, said it expects to break even by the end of this month and is projecting more than NT$80 billion in sales next year, the company said yesterday at a press conference.

"We're very optimistic about potential profitability for this year, because passengers are coming back, plus effective cost-saving measures we have applied during the SARS period," company president Philip Wei (魏幸雄) said.

Wei said the airline's outlook remains positive for the remainder of the year, but he could not offer a full-year earnings forecast.

Wei reiterated expectations that CAL will post a net profit this year.

"Traditionally, September is the peak season for cargo services," Wei said. "Moreover, we have new aircraft."

The carrier received about 40 percent of its sales from cargo last year and expects freight to contribute about half of its revenue by next year, he added.

The expectations of net profit this year are based on a presumption that there will be no SARS outbreak in the second half of the year, according to Wei.

John Chang (張炯滄), CAL's vice president of finance, said sales next year will rise 13 to 15 percent from this year, citing a capacity increase of around 10 percent.