Eva Airways, CAL Expected to see Robust Profit Growth This Year


Taipei, April 7 (CNA) The nation's two largest air carriers are expected to see robust profit growth after fuel price pressure eases, analysts said Saturday.

Both China Airlines (CAL) and EVA Airways Corp. reported lackluster performance last year due to soaring oil prices, although fuel price pressures began to ease in the fourth quarter.

EVA Airways's revenue for 2006 totaled NT$93.9 billion (US$2.84 billion), up 6 percent from the previous year.

The second-largest air carrier reported a pre-tax profit of NT$650 million in the fourth quarter, compared with a loss of NT$1.47 billion in the third quarter.

EVA Airways reported an after-tax net loss of NT$1.68 billion in 2006, which was less than expected.

CAL, the largest air carrier, reported revenue of NT$121.99 billion last year, up 12 percent from the previous year. After-tax net profit was NT$738 million, up 14.43 percent over the previous year.

Analysts said that average oil prices this year are expected to be lower than last year, which they said will ease pressure on air carriers.

In addition, the prospect of more cross-strait charter flights at times other than during the Chinese New Year, Tombsweeping Day, Dragon Boat Festival and Mid-Autumn Festival holidays will also be a boost for the two air carriers.

Analysts estimated that EVA Airways' revenue will be NT$92.14 billion this year, with a pre-tax net profit of NT$1.09 billion, while CAL will register a profit of NT$2.08 billion for the year.

(By Lilian Wu)


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Last updated : 4/11/07