Tue, Aug 13, 2019 - Page 12 News List

EVA Air’s second-quarter net profit plummets 98%

By Kao Shih-ching  /  Staff reporter

EVA Airways Corp (長榮航空) reported net profit of NT$33 million (US$1.05 million) for the second quarter, down 98 percent from NT$1.91 billion a year earlier and the lowest in nine quarters.

Earnings per share (EPS) fell to NT$0.01 last quarter, the airline said.

The decline was mainly due to a strike launched by the airline’s flight attendants in June, forcing it to pay NT$805 million in compensation to affected passengers and markedly increasing its non-operating expenses, EVA said.

The strike, which began on June 20, caused the airline’s June revenue to drop 17 percent year-on-year, compared with a revenue increase of 4 percent in May.

EVA lost NT$2.11 billion in revenue from June 20 to 30 after 469 flights were canceled, it said.

Revenue in the second quarter dropped 1.5 percent year-on-year to NT$43.86 billion, compared with NT$88.17 billion in the first half of the year.

Overall, net profit in the first half fell 42 percent to NT$1.94 billion from a year earlier, or EPS of NT$0.42, company data showed.

Despite the strike, EVA still outperformed rival China Airlines Ltd (CAL, 中華航空), which reported losses of NT$686 million in the first half, compared with net profits of NT$188 million a year earlier.

China Airline’s non-operating expenses in the first half soared 157 percent to NT$1.47 billion after agreeing in February to pay its pilots higher bonuses, it said.

This year’s implementation of the IFRS 16 accounting system has also increased the airline’s depreciation and interest expenses, it added.

As a result, the airline reported losses per share of NT$0.13 over the period.

Last month, the two airlines continued to see revenue decline, with EVA reporting a 12 percent year-on-year drop due to the strike and CAL posting a 2.31 drop because of a sluggish freight business, data from the companies 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