Tue, Aug 13, 2013 - Page 14 News List

Airlines’ revenues mixed last month

TREND:EVA saw consolidated sales last month increase from a year earlier, but China Airlines’ declined as weak cargo sales undermined growth in its passenger business

By Amy Su  /  Staff reporter

EVA Airways Corp (EVA, 長榮航空), the nation’s second-largest carrier, posted record sales last month, buoyed by strong seasonal demand and the marketing benefits of its joining the Star Alliance.

EVA saw consolidated revenue rise to NT$11.29 billion (US$376.58 million) last month, up 2.5 percent from a year earlier and 4.83 percent from a month earlier, the company said in a stock exchange filing.

Accumulated sales in the first seven months of the year reached NT$70.66 billion, edging up 1.35 percent from a year ago, company data showed.

Strong passenger sales on the back of peak summer demand was the major driver behind the increase in EVA’s consolidated revenue last month.

Passenger revenue totaled NT$7.01 billion last month, rising 13.27 percent from a month ago and 6.37 percent from a year ago, company data showed.

However, EVA’s air cargo business remained weak at NT$2.6 billion last month, down 2.62 percent from June and 7.8 percent from the same period last year, data showed.

“Business in the passenger sector remained the main driver for local airlines, with strong seasonal demand expected to boost their revenues in the third quarter to their highest level this year,” Capital Securities Corp (群益證券) said in its latest research note.

China Airlines Ltd (CAL, 中華航空), the nation’s largest carrier, saw a similar increase in passenger demand, while its cargo business also remained weak.

However, its top line contracted 2.07 percent last month to NT$12.87 billion compared with a year earlier, as the sharp decline in its cargo business undermined growth in passenger sales, the company said in a stock exchange filing.

CAL saw revenue from its passenger sector surge 5.79 percent to NT$8.96 billion last month from a year earlier, while sales from its cargo business dropped 9.06 percent to NT$3.11 billion, company data showed.

On a monthly basis, the carrier still saw consolidated sales increase 10.09 percent last month, with passenger sales rising 16.81 percent and cargo sales slipping 5.75 percent.

In the first seven months of the year, consolidated sales totaled NT$80.09 billion, down 2.36 percent year-on-year, it said.

Smaller carrier TransAsia Airways Corp (復興航空) saw its consolidated revenue last month climb 25.48 percent from a year earlier and 22.33 percent from a month earlier to a record NT$1.26 billion.

TransAsia, which offers passenger flights around the region, posted consolidated sales of NT$7.01 billion in the first seven months of the year, up 21.21 percent from the previous year, data showed.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top