CAL slips into the red

Hong Kong
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Taiwan’s China Airlines (CAL) fell into the red in the first half, largely due to a loss that was booked from the sale of an aircraft. A CAL spokeswoman says a net loss of $26m was recorded in the six months to 30 June, compared to a net profit in the same period last year of $3.87m.

The net loss was recorded despite growth in revenue, to $1.8bn from $1.71bn, and the spokeswoman says it was primarily the result of a loss that was booked in the first quarter on the sale of an Airbus A300-600. An operating profit of $31.7m was recorded, however, compared to an operating loss of $5.52m in the year-earlier period.

Fuel accounted for around 50% of the carrier’s total expenditure in the first half. Cargo revenues were also weaker during the period, at $722m against $734m in the same six months of last year. Passenger revenue increased to $994m from $888m.