TransAsia Airways Corp (TNA, 復興航空) yesterday posted the highest earnings per share (EPS) for the year among the nation’s three listed airlines, citing the company’s control on operating costs and strategy to expand international routes over the past year.
TNA, which mainly operates regional and cross-strait passenger routes, earned NT$158.31 million (US$5.27 million), or NT$0.29 per share, for the first six months of this year, compared with net losses of NT$186.3 million, or NT$0.34 per share, during the same period last year, the company said in a statement.
During the April-to-June period, the carrier saw net income total NT$108.69 million, or NT$0.2 per share, posting profit for the fourth consecutive quarter, with the EPS of NT$0.2 marking the highest level compared with its two peers — China Airlines Ltd (CAL, 中華航空) and EVA Airways Corp (EVA, 長榮航空).
The carrier attributed the improvement in profitability to the company’s cost control while fuel prices stayed level with the same period last year, and the expansion of 10 international routes last year.
“The average passenger load factor for [TNA’s] international routes showed a 10 percent rise [in the first half of this year] from the same period last year, to be the main driver for the company’s business,” the statement said.
EVA, Taiwan’s second-largest airline, saw net income in the second quarter return to the black, totaling NT$120.48 million, or NT$0.04 per share, compared with the previous year’s net loss of NT$178.7 million, or NT$0.06 per share, according to the company’s filing with the Taiwan Stock Exchange.
However, for the first six months of this year, EVA still posted a net loss of NT$789.35 million, or NT$0.24 per share, company statistics showed.
CAL remained unprofitable during the April-to-June period, as the nation’s largest carrier reported a net loss of NT$1.03 billion, or NT$0.2 per share, making it the only listed airline in Taiwan remaining in the red.
The level was worse than the NT$116.23 million net loss, or NT$0.03 per share, recorded a year earlier, according to the company’s stock exchange filing.
Net loss in the first six months of the year totaled NT$3.76 billion, or NT$0.72 per share, compared with NT$1.22 billion, or NT$0.24 per share, recorded a year earlier.
The three carriers put high expectations on passenger business this quarter — a traditional peak period with strong seasonal demand during the summer vacation.
However, Capital Investment Management Corp (群益投顧) said fuel costs and aviation cargo business are the two significant factors determining an airline’s long-term momentum.
Under the current level of crude oil prices and the continuous sluggish cargo demand, Capital Investment maintained a neutral attitude toward the carriers’ profitability this quarter.
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