Despite rising oil prices, China Airlines Ltd (CAL, 中華航空), the nation’s largest air carrier, yesterday posted a smaller-than-expected quarterly loss for the second quarter as it has hedged against higher fuel costs.
The air carrier narrowed its quarterly loss to NT$282.41 million (US$9.72 million) during the April-to-June period, from a loss of NT$379.09 million for the first three months, the company’s -financial data showed. The results beat most analysts’ expectations of widening quarterly losses, given higher crude oil prices.
“The company’s hedge on crude oil prices helped improve losses in the second quarter,” a company official, who declined to be named, told the Taipei Times earlier this month.
EVA Airways Corp (EVA, 長榮航空), the nation’s -second-biggest airline, posted a net profit of NT$63.88 million for the second quarter, down 76 percent from NT$269.32 million in the first three months.
In the first half of the year, the two air carriers both posted falling net profits from a year earlier amid lower passenger and cargo demand.
The two airliners expect an improvement in profitability this quarter on strong seasonal passenger demand.
“The company’s third-quarter profit may cover losses from the first half of the year,” the CAL official said.
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