High Fuel Prices Eat into Profits: Evergreen Air's Q2 Net Profit Down Over 40% Year-on-Year

Evergreen Air's second-quarter net profit plummeted by over 40% compared to the previous year, despite a significant increase in revenue. The airline announced a net profit of NT$3.848 billion for the period, a 42.5% drop from the same quarter last year. This occurred even as consolidated revenue rose 22.5% year-on-year to NT$67.77 billion.

The airline attributed the sharp decline in profitability primarily to soaring fuel costs. This financial pressure offset gains made in both passenger and cargo segments. Passenger revenue saw a 15.9% increase, driven by robust international travel demand and a spillover effect from Middle East conflicts. Cargo revenue also surged 41.1%, fueled by strong demand for AI servers and semiconductors.

For the first half of the year, Evergreen Air's consolidated revenue grew 16.4% to NT$128.286 billion. However, net profit decreased by 4.01% to NT$12.116 billion. The airline highlighted steady economic growth in Taiwan and strong international travel demand as key drivers for passenger market growth. The cargo sector benefited from sustained demand, leading to increased freight volume and rates.