EVA Air’s net loss shrinks in Q2

Courtesy of EVA Air

TAIPEI (CNA) — EVA Airways (EVA Air), one of the leading international carriers in Taiwan, on Monday reported a smaller net loss in the second quarter than in the first, saying solid demand for cargo services helped offset the fall in passenger volume amid the COVID-19 pandemic.

In a statement, EVA Air posted NT$614 million in net loss for the second quarter, or NT$0.13 in loss per share, compared with NT$1.2 billion in net loss, or a loss per share of NT$0.25, in the first quarter. The company’s earnings per share in the second quarter of 2019 was NT$0.01.

As the COVID-19 pandemic continued to cripple the global airline industry, EVA Air’s consolidated sales fell 56 percent in the second quarter from a year earlier to NT$19.29 billion, with its revenue from passenger flights plunging 93.6 percent year-on-year to NT$1.52 billion, according to the statement.

The company said, however, that the steep decline in passenger flight revenue was offset by a 137 percent year-on-year jump in cargo services income to NT$14.34 billion in the second quarter.

According to market analysts, EVA Air benefited from strong demand for the delivery of high-tech devices and personal protective equipment in the three month period.

Meanwhile, the airline reported a net loss of NT$1.83 billion, or NT$0.38 per share, for the first six months of the year, compared with NT$1.94 billion, or NT$0.40 per share, over the same period of 2019.

The carrier’s consolidated sales in the first half of the year dropped 44 percent year-on-year, with revenue from its passenger flights falling 59.6 percent from the previous year to NT$20.17 billion, while its revenue from cargo services climbed 70.7 percent to NT$20.72 billion.

EVA Air’s statement of a strong second-quarter increase in cargo revenue followed a similar report last week by Taiwan’s other major carrier China Airlines (CAL), which posted NT$2.46 billion in net profit, or NT$0.45 in EPS, for the second quarter, making a strong comeback from a net loss of NT$3.77 billion and NT$0.69 per share in the first quarter.

Shares of EVA Air and CAL fell 1.35 percent and 1.79 percent, respectively, on the Taiwan Stock Exchange Tuesday, closing at NT$10.95 and NT$8.24. According to dealers, investors were locking in their gains from the previous session, when shares of EVA Air and CAL rose 3.74 percent and 4.61 percent, respectively.