TransAsia Airways Corp (TNA, 復興航空) yesterday posted a net income of NT$292.34 million (US$9.5 million) for the first three quarters of this year, outperforming its local rivals, mainly due to better cost management and rising passenger loads.
That translated into earnings per share (EPS) of NT$0.53, an improvement from the loss of NT$82.63 million, or NT$0.15 EPS, seen during the same period last year, the company said in a statement.
During the third quarter, the carrier saw net income total NT$134.03 million, or NT$0.24 per share, marking the fifth consecutive profitable quarter.
In terms of EPS, TNA outperformed its two domestic 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 its expansion of 10 international routes last year. The company has seen an increase in the number of passengers flying those international routes so far this year.
PASSENGER LOADS UP
“The average passenger load factor for international routes showed a steady rise from the same period last year, which helped drive up the company’s overall business,” TransAsia said in a statement.
CAL and EVA, the nation’s two largest carriers, both returned to the black last quarter — the traditional peak season for the airline industry — on lower fuel costs due to a decline in global crude oil prices and a pickup in passenger business.
CAL POSTS PROFIT
CAL, the nation’s largest carrier by passenger number, posted NT$1.18 billion in net profit, or EPS of NT$0.21, for the July-to-September period, according to the company’s statement filed to the Taiwan Stock Exchange.
LOSSES NOT OFFSET
However, the third-quarter profit is still not strong enough to offset the company’s loss of NT$2.58 billion, or NT$0.5 per share, in the first two quarters, company statistics show.
EVA, the nation’s second-largest carrier, also posted similar results, with a net income of NT$198.13 million, or EPS of NT$0.06, in the previous quarter, the company said in its stock exchange filing data.
However, in the first nine months of the year, the carrier lost NT$591.22 million, or NT$0.18 per share, the data show.
Domestic aviation firms expect business momentum to remain steady, compared with the traditional peak season last quarter, on expectation that the weak yen would boost the number of Taiwanese visiting Japan.
Moreover, declining crude oil prices would help save costs, the companies said.
A steady fourth quarter might pave the way for all those airlines to eke out a profit the whole year.
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