EVA reverses losses and posts net profit of NT$6.6 billion last year
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By Kao Shih-ching / Staff Reporter
EVA Airways Corp (長榮航空) yesterday announced a net profit of NT$6.6 billion (US$231.34 million) for the last year due to robust cargo demand, compared to a net loss of NT$3.36 billion in 2020 due to the effects of the COVID-19 pandemic.
The airline reported earnings per share of NT$1.31 last year, higher than its earnings per share of NT$0.83 in 2019, when the company reported net profit of NT$3.98 billion. NT dollars.
The board also yesterday approved a proposed cash dividend distribution of NT$0.6 per share, suggesting a payout ratio of 45%, EVA said in a filing at the Taiwan Stock Exchange. .
Photo courtesy of Taiwan Taoyuan International Airport Corp
The proposal is subject to shareholder approval at its May 31 annual meeting, EVA said.
Last year, revenue rose 15% year-on-year to NT$103 billion, driven by a 70% increase in freight revenue to NT$85 billion, while gross margin fell from 9.61% to 18.6% last year, according to the company’s financial report.
The board also approved a proposed contract with Israel Aerospace Industries Ltd to convert three Boeing 777-300ER passenger planes into freighters starting in 2025 for up to $40 million each.
The conversion would help bring the airline’s freighter fleet to 11 and increase cargo capacity by 10%, EVA said in a statement.
“We have an optimistic outlook for the air cargo business, so we have redesigned the allocation of jets. Once the ratio of our cargo revenue to total revenue increases, our competitiveness will be enhanced,” said EVA President Clay Sun (孫嘉明).
EVA owns eight Boeing 777F jets, according to company data.
Although a converted 777-300ER passenger aircraft can only carry 100 tons of cargo compared to the 106-ton capacity of a 777F, since the 777-300ER is longer, its cargo space volume is 25% larger than a 777F, making it ideal for carrying e-commerce shipments, leaving the 777F to carry heavy loads, EVA said.
Having both jets would give the airline more flexibility in arranging cargo, he added.
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