‘Cargo-centric’ strategy reaps record revenue for China Airlines

China Airlines has disclosed record cargo revenues for 2021, as it doubles down on what it calls a “cargo-centric business model”. For the full year, the Taiwanese carrier says cargo revenue surpassed NT$100b ($3.6b), the highest in its 62 years of operations. China Airlines also states that freighter revenue in December hit a single-month high of more than NT$15.4b. While it has yet to disclose its full-year earnings, the uptick in cargo takings is expected to help offset a collapse in passenger travel revenue amid the pandemic, and provide a lift to the carrier’s profitability. China Airlines’ cargo unit operates a fleet of 21 dedicated freighters, comprising 18 Boeing 747-400Fs, as well as three 777 freighters. The carrier mounted around 540 cargo flights a month, averaging around 120 flights weekly. It adds: “The integration of passenger and freighter capacity along with continued optimisation of schedules and connections meant that over a hundred passenger and freighter charter flights were dispatched in a given month.” China Airlines, along with compatriot EVA Air, swung back to profitability in the third quarter of 2021, amid a steady rise in revenue. In previous quarters, both carriers have pointed to a strong cargo performance as a key factor in boosting their earnings.<br/>