Two of Taiwan’s largest carriers — China Airlines and EVA Air — posted operating losses for the quarter ended 31 March, as they felt the impact of the coronavirus outbreak.
While operating costs and expenses fell, both carriers reported a big drop in revenue, in part due to global pandemic-related travel restrictions and falling travel demand.
For the period, China Airlines reported an operating loss of NT$2.97 billion ($101 million), reversing the NT$761 million profit it made last year. EVA Air meanwhile, posted an operating loss of NT$1.09 billion, compared to last year’s NT$2.1 billion profit.
China Airlines saw revenue for the quarter drop 19% to NT$32.6 billion, while expenses fell about 10% to NT$35.5 billion.
The SkyTeam carrier posted a net loss of NT$3.78 billion. It ended the period with NT$39.6 billion in cash and cash equivalents, higher than the NT$28.5 billion it began the period with.
As for EVA Air, it reported a 32% year-on-year drop in revenue to NT$30.2 billion. Expenses for the period fell nearly 25% to NT$30.7 billion.
It made a net loss of NT$1.22 billion, reversing the net profit of NT$1.91 billion it made last year.
The Star Alliance carrier ended the period with reduced cash and cash equivalents, at NT$40.4 billion, compared to NT$51.5 billion at the start.
In a brief discussion of its earnings, China Airlines notes the impact the pandemic has had on its revenue. It adds that apart from having to adjust its operations, it has had to control expenses and shore up its capital. It will also tap on opportunities in the cargo market to boost revenue in the coming months.
EVA Air did not include a discussion in its earnings report.