Eva Airways posted higher earnings than China Airlines in 2005

This article was published by the Taiwan Headlines on April 19, 2006. It reports that Taiwan Eva Airways posted after-tax profit of NT$1.326 billion (US$39 million) in 2005, surpassing that of its rival China Airlines for the first time since it entered the airline industry some 15 years ago.

In 2005, Eva Air gained revenue of NT$88 billion (US$2.59 billion), less than China Airlines' NT$108 billion (US$3.18 billion). Because of soaring international oil prices, Eva Air's spending on fuel oil in 2005 soared as well, which reduced its net profit rate to 1 percent from 6 percent in 2004. In the same period, China Airlines saw its net profit rate drop to 3.08 percent from 5.84 percent.

However, Eva Air's non-operating expenditure amounted to only NT$1.7 billion (US$50 million) in 2005, much lower than China Airlines' NT$4.6 billion (US$50 million). This was the main reason why Eva Air posted better profits than China Airlines.

Industry analysts predict that in 2006, the performance of the two leading airline companies in Taiwan will hinge largely on fuel oil spending, arbitrage of foreign exchanges, and interest payments.