Taiwanese carriers swing to Q1 profits

Taiwan’s two major carriers rebounded to the black for the first quarter of 2022, as revenue increase outpaced a rise in operating costs. It is fourth consecutive profitable quarter for China Airlines and EVA Air, both of whom reported sharp increase in revenues for the quarter to 31 March despite a spike in coronavirus infections in Taiwan. China Airlines reported an operating profit of NT$3.6b ($88.4m) for the period, reversing its NT$469m loss in 2021’s Q1. The SkyTeam carrier saw a 34% jump in revenue to NT$37.2b, outpacing a 21% increase in costs to NT$31.7b. China Airlines reported a quarterly net profit of NT$3b, against 2021’s NT$1b net loss. As for EVA Air, it swung to a NT$4.2b operating profit in the quarter, reversing 2021’s NT$1.8b loss. Revenue for the period increased 53% to NT$30.1b, while costs rose 23% year on year to NT$23.6b. The Star Alliance carrier’s net profit for the quarter was NT$3.3b, compared to the NT$2.2b net loss in 2021. Both carriers did not provide any detailed analysis of its financial results in separate filings on the stock exchange. It is, however, understood that cargo operations has been key in lifting the carriers’ earnings through the pandemic. Both China Airlines and EVA Air have in the past few months announced plans to double down on freight operations with fresh orders for Boeing 777 freighters. <br/>