Cargo focus helps China Airlines eke out profit in 2020

A strategy of “prioritising cargo over passenger services” during the coronavirus pandemic has helped China Airlines stay in the black, despite a sharp decline in passenger travel demand. The Taiwanese carrier, which recently reported an operating profit of NT$2.18b ($76.3m) for the year ended 31 December 2020, disclosed an 87% year-on-year increase in cargo revenue. This compares to a 77% plunge in passenger revenue for the year, amid ongoing travel restrictions and border closures. China Airlines disclosed on 18 March that its full-year revenue shrank about 32% year on year to NT$115b. The carrier says it will continue to tap into the “steady demand” from air cargo services, including expanding its cargo network. This year, the carrier will add increased services to undisclosed points in Europe. It will also add stopovers in the Indian cities of Delhi and Mumbai to “tap into India’s market potential”, as well as expand its Mainland China freighter network with flights to Ningbo and Tianjin.<br/>