Taiwan airlines brace for peak summer season

Taipei, June 26, 2003 (CENS)--After experiencing one of their biggest-ever crises in April and May following the outbreaks of severe acute respiratory syndrome (SARS), Taiwan-based air carriers are expected to brace for a flood of passengers in the coming peak season in summer.

Industry sources said that business turnovers of Taiwan-based airlines in June, July and August are expected to surge from their May performances, with outbound travel already showing signs of recovery.

For the moment, flights to destinations in Southeast Asia, such as Bali, as well as to Europe and the U.S., are becoming more popular, while passenger loads on flights bound for Hong Kong and Macau--which were seriously affected by SARS with over 50% of flights combined or canceled in April and May--almost increased in June.

China Airlines, Taiwan's largest air carrier, said its June passenger number is more than double its May figure, while EVA Airways Corp, the island's second largest air carrier, said its June passenger record is at least three times its May level.

Despite the re-emergence of travelers and tourists, many aviation firms still remain reserved about their profits on the grounds that ticket prices this summer are about 30% cheaper than last year's levels and passenger loads might also be 30% less than the past average, the industry sources said.

China Airlines estimated that its business turnover hit around NT$4.03 billion in May, down 38.89% from year-earlier level of NT$6.71 billion. CAL forecast that it might resume almost all normal flights in July, since its June operations have shown noticeable improvement.

EVA Airways announced its May business turnover at NT$3.76 billion, down 25.35% from one year earlier. Its combined business volume for April and May dropped by NT$1.7 billion from the same two-month period last year, while its projected June operation earnings might slide by NT$1.5 billion from one year earlier.