Taiwan-based air carriers are considering increasing their fuel surcharges to customers in the face of mounting operating costs brought about by record oil prices.
\nBoth China Airlines (CAL, 華航) and EVA Airways Corp (長榮) said that they will not raise prices immediately, but must consider it an option given the rising costs of oil. Oil hit of just under US$45 a barrel a few days ago.
\nAccording to a CAL spokesman, the airline does not intend to raise its existing fuel surcharges immediately but will continue to gauge the situation.
\nAn EVA executive said that the carrier will make moves to reflect its rising production costs should international oil prices jump to a level exceeding EVA's limits.
\nStarting from July 1, CAL, EVA and four other Taiwan-based airlines imposed a fuel surcharge ranging from US$5 to US$13 for each travel section for three months in the face of soaring oil prices.
\nThe carriers promised that they would rescind the fuel surcharges when the price fell back to US$36 per barrel.
\nThe rising oil prices have forced Taiwanese carriers to worry about their future earnings prospects, in particular for the third quarter.
\nAlthough passengers can share part of their financial burden through fuel surcharges, aviation companies said that the price hikes have not fully reflected their operating costs.
\nDespite uncertainties surrounding oil prices that might erode the airlines' earnings, as market watchers have predicted, CAL and EVA are still upbeat on making their profit targets for the whole of this year, thanks to their good business in the first six months.
\nCAL forecast that its full-year business revenue would reach NT$89.074 billion (US$2.62 billion) for this year, with an estimated after-tax profit of NT$3.04 billion.
\nThe nation's largest carrier is confident of meeting its full-year profit forecast, CAL president Philip Wei (
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to