Fri, Nov 22, 2024 page12

• CAL positive on renewed jet fleet

  AVIATION BOOM: CAL is to renew its passenger and cargo fleets starting next year on record profits as aviation continues to return to pre-pandemic levels

  • By Chen Cheng-hui / Staff reporter
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  China Airlines Ltd (CAL, 中華航空) yesterday said it is optimistic about next year’s business outlook, as the airline continues to renew its fleet on expectations that global passenger traffic would maintain steady growth and air cargo demand would remain strong.

  From next year to 2028, the airline is to welcome a new Boeing Co 787 fleet — 18 787-9 and six 787-10 passenger aircraft — to cover regional and medium to long-haul destinations, CAL chairman Hsieh Shih-chien (謝世謙) said at an investors’ conference in Taipei.

  The airline would also continue to introduce Airbus SE 321neo passenger planes and Boeing 777F cargo jets, Hsieh said.

  

  From left, China Airlines Ltd president Kao Shing-hwang, chairman Hsieh Shih-chien and senior vice present Chen I-chieh attend an investors’ conference in Taipei yesterday.

  Photo: Wang Yi-hung, Taipei Times

  With the phase-out of the Boeing 744F freighter fleet and the full deployment of the 777F cargo jets, along with the addition of 787 belly cargo capacity, CAL aims to further enhance its freight capacity and revenue, the company said in an earnings report.

  However, the airline said its passenger capacity has only reached 80 percent of pre-COVID-19 pandemic levels, causing ticket prices to rise by 20 to 30 percent. Moreover, the international aviation industry’s supply chains are still way behind on their ability to manufacture new planes, it said.

  Hsieh said this situation might continue for another three years and would not ease up until 2027 at the earliest.

  “Delivery delays might become the norm,” he said.

  Supply and demand would continue to be tight next year, which would further drive up ticket prices.

  “As long as passenger traffic remains strong, the overall outlook is still positive,” he said.

  Global passenger traffic has been on a steady climb since April 2021, with the International Air Transport Association (IATA) projecting an annual 11.6 percent increase in passenger traffic this year. The Asia-Pacific region is expected to achieve double-digit growth in passenger traffic this year and next, leading other regions, the IATA forecast.

  Meanwhile, global trade growth, economic recovery and constraints on maritime shipping capacity have driven continued growth in air cargo demand, with international air cargo demand this year likely to increase 15 percent compared with last year and air cargo volume to grow 5 percent, the IATA said in June.

  CAL reported that net profit in the third quarter grew 66.6 percent year-on-year to NT$3.83 billion (US$117.5 million) and earnings per share (EPS) rose 65.8 percent to NT$0.63.

  Revenue in the quarter increased 9.09 percent annually to NT$52.02 billion, with passenger business sales edging up 0.7 percent to NT$26.87 billion, while cargo business sales climbed 20.5 percent to NT$15.71 billion, the airline said.

  In the first three quarters, total net profit reached a record NT$10.37 billion, up 50.3 percent from a year earlier. EPS increased 48.7 percent to NT$1.71 year-on-year, CAL said.

  Cumulative revenue over the period totaled NT$150.93 billion, up 9.7 percent, with passenger business sales growing 12.15 percent to NT$97.15 billion and cargo business sales up 1.02 percent to NT$42.86 billion, it said.

  Passenger and cargo revenue maintained steady growth, especially in Northeast Asia, Southeast Asia and long-haul flights, CAL said.
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