China Airlines to add eight new jets, bullish on outlook

The firm plans to lease at least one Airbus 350-900 this year and add 24 Boeing 787s from next year to 2028 to boost operating efficiency

China Airlines Ltd (中華航空) yesterday said that it is optimistic about this year’s business outlook, and expects to receive five Airbus SE 321neo passenger aircraft and three Boeing Co 777F cargo jets as the airline continues to renew its fleet and enhance its overall performance.

The airline plans to retire its fleet of Boeing 737-800 passenger planes in phases to maintain stability in its regional flight schedule, China Airlines president Kao Shing-hwang (高星潢) said on the sidelines of a news conference in Taipei, at which the airline introduced new inflight meals designed by chefs at Grand Mayfull Hotel Taipei (台北美福大飯店).

China Airlines is to continue its fleet renewal as the airline positions itself for future growth, with plans to lease at least one Airbus 350-900 passenger plane this year and introduce 24 Boeing 787 passenger planes from next year to 2028 to improve its operating efficiency on long-haul routes, it said at an earnings conference in November last year.

The airline is also looking to accelerate the retirement of its Boeing 747-400F cargo jets this year to reduce fuel costs, it added.

Kao said the airline is still in the process of developing new routes. Earlier this month, the airline announced that it would begin a nonstop service between Taiwan Taoyuan International Airport and Seattle on July 14 after a 16-year hiatus.

China Airlines joins US carrier Delta Air Lines Inc and fellow Taiwanese carriers EVA Airways Corp (長榮航) and Starlux Airlines Co (星宇航空) in adding a nonstop service to Seattle this year as airlines expand their North American network of destinations to take advantage of growing demand for travel between Taiwan and the US.

While the direct flights to Seattle offered by rival carriers would increase competition, China Airlines does not expect a significant impact on its ticket prices given robust demand, Kao said.

China Airlines last year posted revenue of NT$184.82 billion (US$5.78 billion), a 22.6 percent year-on-year increase, driven by a 354.14 percent surge in passenger revenue of NT$115.72 billion, despite a setback in cargo revenue compared with a year earlier.

The airline’s net profit surged 138.47 percent year-on-year to NT$6.82 billion last year, while earnings per share rose to NT$1.13 from NT$0.48, company data showed.

China Airlines’ new in-flight meals are available on TaiwanChina and Taiwan-Southeast Asia routes, as well as some flights to Japan and South Korea, starting on Monday next week, the airline said.