Profit statements

China Airlines extends momentum, reports first quarter profit

Taipei, May 10 (CNA) China Airlines (CAL), one of Taiwan’s major international airlines, reported net profit for the first quarter of 2022, continuing the momentum it built in 2021 by taking advantage of the high demand for air cargo services.

In a statement on Monday, CAL reported net profit of NT$3.072 billion (US$103 million), or NT$0.52 in earnings per share, in the January-March period, after posting a profit net of NT$9.38 billion and NT$1.67 EPS for the full year 2021.

First quarter net profit was a turnaround from the first quarter of 2021, when CAL reported a loss per share of NT$0.19, helped by a 33.8% year-on-year increase in first quarter consolidated sales. quarter at NT$37.23 billion.

Growing demand for air cargo

The carrier said that with no signs of an impending downturn in the shipping market, customers have shifted to airfreight, leading to growing demand for CAL’s airfreight services.

CAL has responded to this demand by leveraging its strong cargo fleet of 21 aircraft to provide the most stable services possible to customers, which has resulted in increased revenue, the carrier said.

The peak shipping season normally seen in the fourth quarter has also extended into the first quarter of 2022, providing further support to the air cargo sector, he said.

This strong demand has helped the carrier offset rising fuel costs and operating expenses to remain profitable, according to the airline.

Passenger activity

Regarding its passenger business, CAL said it saw weak growth in the first quarter as Taiwan’s strict border controls to combat the COVID-19 pandemic remained in place.

Lockdowns in Hong Kong and China have also hurt overall passenger volumes, but traffic on its routes between Taiwan and the United States, Europe and Australia has seen some growth due to holiday travel. Lunar New Year in February.

Overall, the airline said its passenger-kilometre revenue, which shows the number of kilometers flown by paying passengers, and revenue generated from its passenger operations increased in the first quarter compared to the previous year, but she did not provide any figures.

The airline said it will focus on the airfreight businesses of semiconductor equipment suppliers, online sellers and consumer electronics makers to boost revenue in the second quarter.

It also plans to increase passenger services from June, especially on routes to East Asia and Southeast Asia, CAL said.