EVA Airways Corp (
China Airlines, one of the world's most unsafe carriers, said net profit rose 21.8 percent in the six months to June, despite an air crash over the Taiwan Strait that killed 225 people in May.
The financial outlook for the remainder of the year could be impacted by drastically increased insurance premiums, executives from the carrier said.
The airline's net profit of NT$1.34 billion during the first half of the year was up from NT$1.1 billion a year earlier, while sales increased by 6 percent to NT$36.12 billion over the same period last year, according to a China Airlines filing with the Taiwan Stock Exchange.
Air traffic has risen since the slump following the Sept. 11 attacks on the US, executives said.
Executives confirmed that China Airlines may soon face sharply higher insurance premiums.
China Airlines could be charged premiums in excess of US$100 million as a result of a long string of serious accidents, the executive said. Compensation talks with families of victims of the May crash are ongoing, and may result in a record-breaking payout that could further hurt the company's bottom line.
EVA, Taiwan's second-largest carrier, recorded a return to the black, notching up NT$760 million in net profit for the first half, compared to a NT$2.52 billion loss for the same period last year.
New services to Tokyo and a general readjustment of its route structure had contributed to its improved performance as well as a pick up in passenger and cargo traffic, EVA said in a statement.
Passenger sales rose 3 percent to NT$15.4 billion and cargo sales gained 18 percent to NT$11.6 billion, with freight posting a significant recovery since the fourth quarter of last year, the statement said. Overall sales in the first half hit NT$29.1 billion, up 13.2 percent year-on-year.
EVA said sales should continue to improve in the second half following the addition of routes to Hong Kong and increased passenger traffic during the coming holiday season.
EVA said its operating costs rose 4 percent in the first half, aiding a 16.5 percent growth in gross profit. It was 8.8 percent during the same period last year.
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