China Airlines reports massive profit increase

Airline Industry Information, Oct 22, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

China Airlines, Taiwan's largest commercial carrier, has announced a net profit of TWD3.4bn for the first nine months of 2004, up from TWD408m over the same period in 2003.

The massive rise in profits has been put down to the market recovery following the SARS outbreak in 2003 which devastated the air market in Asia. The airline's revenue for the period ending September 2004 was up to TWD70.05bn from TWD53.54bn in 2003, leaving it with a pre-tax profit of TWD3.5bn and allowing the airline to raise its 2004 net profit forecast by 33% to TWD4.08bn.

A spokesperson for the airline said that its performance was better than expected and that its fuel hedging policy and cost cutting all helped it negotiate a volatile marketplace, reports Dow Jones.

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