CAL to boost annual earnings forecast

China Airlines (CAL, 華航), the nation's largest air carrier, said yesterday it will soon raise this year's earnings forecast by at least 20 percent.

CAL's pretax profit for the first three quarters totaled NT$3.5 billion (US$103.4 million), far exceeding the company's own estimate of NT$2.17 billion, it said in a statement filed with the Taiwan Stock Exchange.

With effective fuel hedging and cost controls, the company's actual pretax profit will surpass its 2004 forecast by at least 20 percent, the company said.

Under Taiwan's regulations, a company is required to revise its earnings forecast only if it expects the results to come in 20 percent higher or lower than its original forecast.

The company is expected to announce its revised forecast around Oct. 20.

The airline's finance department is still finalizing the revisions, which will then be presented to the board of directors for approval, the company said.

For this year, China Airlines has projected net profit of NT$3.04 billion, pretax profit of NT$3.15 billion, and revenue of NT$89.07 billion.

One reason for the airline to revise its forecast is the "exceptionally" strong September revenue, the company said.

Last month, China Airlines reported revenue of NT$8.23 billion, up from NT$6.86 billion in September last year.