Thu, Aug 30, 2012 - Page 13 News List

EVA turns profit on strong demand in Q2, but reports loss for first six months

By Amy Su  /  Staff reporter

EVA Airways Corp (EVA, 長榮航空), the nation’s second-largest air carrier, has swung into profit in the second quarter from the previous quarter on the back of stronger passenger business and lower fueling costs.

The airline yesterday posted NT$199.04 million (US$6.64 million), or NT$0.06 per share, in net profit during the April-to-June period, compared with a net loss of NT$1.08 billion, or a NT$0.33 loss per share, in the previous quarter, the company said in its stock exchange filing.

However, the carrier still reported a net loss of NT$881.4 million, or NT$0.27 per share, in the first six months.

In June, EVA chairman James Jeng (鄭光遠) said the company’s profitability would stage a rebound between last month and next month, because of strong seasonal demand from the passenger sector, especially in cross-strait routes.

The carrier announced on Tuesday it would sell two Boeing 747-400 Combi aircraft and said the sale would help it save on costs and maintain profitability, as continued low sentiment in the global economy could further drag down the cargo business, while uncertainties about crude oil prices would add pressure on the profitability of long-term routes.

The airline said it also planned to selling all of its B747-400 passenger and Combi aircraft over the next three to five years ahead of a planned fleet upgrade.

Meanwhile, TransAsia Airways Corp (TNA, 復興航空) yesterday said the first A330-300 aircraft it purchased from Airbus SAS in France may be delivered in November.

The carrier has ordered 29 new planes in the past two years, including two A330-300 planes, 18 Airbus 321 series eight ATR 72-600 aircraft and one additional option. The orders are planned to be delivered between this year and 2022.

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