China Airlines, EVA post revenue growth for March

By Amy Su  /  Staff reporter

Fri, Apr 11, 2014 - Page 13

The nation’s two major airlines saw their consolidated revenue last month grow from a month earlier on the back of cargo business recovery after the Lunar New Year holiday.

China Airlines Ltd (CAL, 中華航空), the nation’s largest carrier, posted NT$12.36 billion (US$410.22 million) in sales last month, up 16.93 percent from a month earlier and 5.63 percent from a year earlier, the company said in a filing to the Taiwan Stock Exchange.

That led the carrier to record a consolidated revenue increase of 5.92 percent to NT$34.98 billion in the first three months compared with the same period last year, statistics showed.

The company’s passenger business remained steady last month compared with February, while sales from the cargo segment showed a 70 percent month-on-month expansion.

CAL chairman Sun Hung-hsiang (孫洪祥) said last month that cargo segment started recovering in the fourth quarter last year, along with an improving global economy.

Smaller rival EVA Airways Corp (EVA, 長榮航空) said its consolidated revenue inched up 17.47 percent to NT$10.69 billion last month from February and grew 7.51 percent from a year earlier.

The carrier’s passenger sales showed 2.46 percent growth last month from February, with cargo revenue climbing 50.26 percent month-on-month, data showed.

For the first quarter of the year, EVA’s revenue totaled NT$30.39 billion, up 4.36 percent from the same period last year.

TransAsia Airways Corp (TNA, 復興航空), which focuses on the regional passenger business in Asia, saw consolidated revenue of NT$990.05 million last month representing an increase of 1.17 percent from a year ago, but a decrease of 0.84 percent from February, the company said in a statement.

Cumulative sales totaled NT$2.96 billion in the first three months, up 8.28 percent from a year earlier, data showed.

Capital Investment Management Co (群益投顧) said in a recent report that the passenger business would show significant growth this quarter due to the upcoming summer vacation, but the joining of various budget airlines focusing on cross-strait routes may add pricing competition for major carriers.

The brokerage said it maintains a neutral view toward the domestic airline sector in the near term.