Strong cargo revenues help EVA Air offset Q2 net loss

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EVA Airways reported a smaller net loss in the second quarter than in the first, as solid demand for cargo services helped offset a decline in passenger volume amid the Covid-19 pandemic.

In a statement, EVA Air said 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 reports, EVA Air benefited from strong demand for the delivery of high-tech devices and personal protective equipment in the three month period.

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.

Also Read: Covid-19 places cargo right at the centre of airlines’ revenue models

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.

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.

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