Taiwanese carrier EVA Air posted a net loss of NT$1.88 billion ($57 million) in the fiscal second quarter and plans to boost its capital by issuing bonds.

The carrier made a net profit of NT$200 million in the first fiscal quarter but says for the first half, six months ending 30 June, it had a net loss of NT$1.68 billion compared to a net loss of NT$5.97 billion for 2008's first half.

This means it made a net loss of NT$1.88 billion in the second quarter.

Revenue in the first half fell 29% year-on-year to NT$32.6 billion from NT$46.2 billion, it says.

The Taiwanese carrier attributes the loss to the protracted global economic downturn and the fall out from the H1N1 virus.

In the first half passenger traffic was down 9% year-on-year and the passenger load factor fell five percentage points to 79% from 74%, it says.

"In cargo, capacity has already been cut substantially due to abating demand and mothballing" of aircraft.

"This also led to a 32% fall in traffic" and "collapsing yields has brought about a fall in cargo revenue to NT$9.2 billion or 51% lower year-on-year", it adds.

An EVA spokeswoman tells ATI the airline's board of directors on 27 August decided the company will issue corporate bonds in an effort to raise cash.

The bonds will be privately placed and the board has set a quota of NT$10 billion, she says, adding that "no further details have been set down including the rate or timing."

Source: Air Transport Intelligence news