Despite strong seasonal demand for passenger services, the nation’s two leading airlines posted a month-on-month decline in revenue for last month amid continuing weak demand for cargo services.
Revenue at China Airlines Ltd (CAL, 中華航空), the nation’s largest air carrier, fell 2.9 percent from a month earlier to NT$12.06 billion (US$405.51 million), the company said in a filing to the Taiwan Stock Exchange yesterday.
The sluggish demand for cargo business was the major factor dragging down the carrier’s revenue last month, as cargo revenue decreased 8.77 percent month-on-month to NT$3.12 billion, statistics showed.
Revenue from passenger services continued to show seasonal momentum by rising 0.59 percent from a month earlier to NT$8.52 billion last month, according to company data.
On an annual basis, CAL still posted a 2.35 percent growth in revenue last month, with passenger sales up 8.81 percent and cargo sales down 12.36 percent.
Revenues of the nation’s second-largest airline, EVA Airways Corp (EVA, 長榮航空), also showed a similar trend.
The carrier reported NT$9.97 billion in revenues for last month, down 0.8 percent from a month earlier.
The company’s data showed its passenger revenue rose slightly by 0.6 percent to NT$6.63 billion from the previous month, while cargo revenue fell 3.9 percent month-on-month to NT$2.71 billion.
On a yearly basis, revenue at EVA rose 6.07 percent last month, with passenger sales climbing 12.18 percent and cargo sales falling 9.06 percent, statistics showed.
Capital Securities Corp (群益證券) said momentum in the air cargo sector may start rebounding this month, as demand may climb on the back of the upcoming year-end peak season for sales of electronics products.
However, a recent rise in global crude oil prices may hit airlines’ profitability in the fourth quarter, the brokerage house said in a research note on Saturday.
As of the end of last month, the free-on-board price of Singapore aviation fuel had risen to US$133.08 per barrel, from US$106 per barrel in late June, statistics showed.
Compared with the two major airlines, a Grand Cathay Securities (大華證券) report issued yesterday said TransAsia Airways Corp (TNA, 復興航空) may be less affected by rising fuel costs, as it focuses more on regional passenger routes, with lower fueling costs than long-haul routes.
Revenue for TNA totaled NT$889.08 million last month, up 4.51 percent from a year earlier, but down 7.95 percent from a month earlier, company statistics showed.