China Airlines Co (華航) shares dropped 5.3 percent after Taiwan's largest carrier slashed its 2001 pretax profit forecast by 57 percent as global demand for travel and cargo shipments drops.
China Air shares fell US$0.55 to close at NT$9.85, compared with 2.5 percent drop of the nation's key TWSE Index. Shares of EVA Airways Corp (
Airlines worldwide are struggling as demand slumped after hijacked commercial jets were used as weapons to destroy the World Trade Center in New York and parts of the Pentagon in Washington on Sept. 11.
The US-led retaliatory bombing campaign against Afghanistan has entered its second week, deterring travelers from flying and raising the cost of airfreight.
China Airlines said on Friday it expects a pretax profit of NT$1.4 billion (US$40 million) this year, down from an earlier forecast of NT$3.3 billion. Sales are expected to total NT$70.6 billion, down from NT$79.1 billion for the year as predicted earlier.
EVA Air cut its 2001 forecast to a loss of NT$3.35 billion on Aug. 31, prior to last month's terrorist attacks in the US. The company doesn't plan to revise the forecast again, said EVA Air Chief Financial Officer Philip Chen.
Under Taiwan regulations, companies are required to announce changes in earnings forecasts only when the new projection deviates more than 20 percent from the previous target.
EVA has cut 17 round-trip passenger flights since the Sept. 11 attacks.
RSS