http://www.taipeitimes.com/News/biz/.../20/2003458968
Things may be looking up for these two airlines.
Robust cargo trade brings CAL, EVA back into black
STAFF WRITER, WITH CNA
Friday, Nov 20, 2009, Page 12
Robust air cargo business propelled turnover for Taiwan’s two leading carriers from deficits to profits last month, airline sources said yesterday.
China Airlines Ltd (CAL, 中華航空) said the company’s balance sheet went from red to black in late September, when air cargo shipment rates soared to 70 percent and continued to rise.
To meet increasing demand, it said, CAL put two mothballed cargo planes back into use last month and a third mothballed plane is scheduled to resume service by early next month.
In addition, fares for air cargo transport have soared by 40 percent since September — also helping shore up the company’s overall business turnover for last month, CAL said.
EVA Airways Corp (EVA, 長榮航空) also reported positive growth in its monthly business turnover for last month, thanks to rising air cargo business since the end of the third quarter.
“Business became even hotter in November, [despite] the number of flights across the Taiwan Strait failing to meet booking requirements,” EVA said.
Increased air cargo fares for US and European routes, up between 10 percent and 15 percent in recent days, have prompted the company to forecast an even brighter future for the fourth quarter.
CAL posted an after-tax deficit of NT$2.619 billion (US$81.1 million) in the third quarter, with its EPS (earnings per share) standing at negative NT$0.78, while EVA’s after-tax deficit totaled NT$2.219 billion, with an EPS of negative NT$0.95.
As a result of the global economic meltdown that began late last year, CAL posted an after-tax deficit of NT$4.985 billion for the first three quarters of this year, compared with EVA’s deficit of NT$3.901 billion for the same period.