Reported 11 months ago
According to aviation industry reports, while strong passenger demand was expected, the robust performance in cargo transport exceeded expectations in the third quarter of 2024. The key factors driving this exceptional growth include increased demand for air cargo due to AI and e-commerce, reaching new high unit prices per kilogram. The simultaneous rise in air cargo prices and volume is set to elevate the revenue and profits of China Airlines (2610) and EVA Air (2618), turning them into unexpected heroes this year. Analysts believe that the reason behind the stellar performance of China Airlines and EVA Air is the exceptional market conditions for air cargo, leading to a double boost in profits; combined with the second-quarter decline in international oil prices reflecting in third-quarter profits, resulting in a triple positive of robust air passenger and cargo demand and reduced costs. The benefits of the rapidly improving air cargo market will be even more evident from June onwards, with growing revenues. Despite seasonal variations in air ticket prices, the overall high demand and negligible price drops have led to a significant increase in demand for resuming flights, further enhancing the revenue and profit growth of passenger services.
Source: YAHOO