"We are a bit more aggressive in fuel hedging," said Wei. "Crude oil costs are unlikely to fall because of the recovering global economic outlook, instability in the Middle East and low US inventories."
The carrier expects the hedging to contribute about US$2.5 million to revenue a month for at least the first half of the year, and more should fuel costs rise further.
Chine Airlines recorded record sales of NT$7.7 billion (US$231 million) in January, with pre-tax profit hitting about NT$500 million. With deliveries of seven new passenger and cargo planes this year in an industry which is recovering from last year's SARS epidemic, profit will almost double to US$100 million this year from US$51 million last year, Wei said.
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