Taiwanese carrier EVA Air has announced a net profit for 2021, attributing its performance to high cargo demand. The airline’s cargo division saw a 70% increase in revenue compared to the previous year. The carrier plans to bolster its cargo division in the coming years.
EVA Air reverses losses
EVA Air reported NT$6.6 billion (US$231.34 million) in net profit over the past year, with revenues up by 15% from 2020. The carrier’s return to profitability was aided by its cargo division, which saw record demand for cargo services over 2021.
Cargo revenue up by 70%
The carrier owes much of its income to its cargo division, consisting of eight Boeing 777Fs. Overall revenue was up by 15% to NT$103 billion ($3.6 billion), driven by a 70% increase in cargo revenue to NT$85 billion ($2.97 billion). Gross margin also rose from 9.61% to 18.6%.
EVA also posted earnings per share of NT$1.31 ($0.046) for last year, higher than its earnings per share of NT$0.83 ($0.029) in 2019 when the airline last reported a net profit. In 2019, EVA Air’s net profit stood at NT$3.98 billion ($139 million).
More cargo aircraft
Given EVA’s exceptional performance in the cargo sector, the airline’s board approved a contract to convert three Boeing 777-300ER passenger aircraft into freighters. The carrier will partner with Israel Aerospace Industries Ltd to convert the aircraft from 2025 at the cost of around $40 million each.
Clay Sun, President of EVA Air, said,
“We hold an upbeat outlook for air cargo business, so we have redesigned the allocation of jets. Once the ratio of our cargo revenue to all revenue grows, our competitiveness will be enhanced.”
The airline stated that this contract would boost its cargo capacities by around 10% and increase its cargo fleet to 11 aircraft. The three converted 777-300ERs will complement EVA’s eight Boeing 777Fs.
EVA Air added that while a Boeing 777-300ERSF’s 100 tonnes capacity is six tonnes less than the 777F, its longer frame offers 25% greater cargo volume. This makes it suitable for conducting e-commerce operations, while the 777F would be deployed for heavy loads. Having both types in the fleet will give the airline flexibility in its cargo operations.
Are you happy to see EVA Air return to profitability? What do you think of the carrier’s plans to expand its cargo division? Let us know in the comments.