CAL to Challenge New High in Earnings in 2010

Taipei, Dec. 29, 2009 (CENS)--China Airlines Ltd. (CAL), Taiwan's leading airline, is sure to see positive earnings growth in 2010, based on continual growth in the fourth quarter of this year.

Chairman Philip Wei said so at the company's 50th anniversary. The market expected CAL will eclipse its 2004 peak of over NT$4 billion (about US$123.83 million) in overall earnings in 2010.

Taiwan's other major airline EVA Airways echoed CAL's projection, saying its 2010 performance will improve over 2009's.

Although the IATA (International Air Transportation Association) predicted the world's airline industry will lose US$11 billion in 2009, Wei said his company bucked such trend to posted NT$1.05 billion (US$32.5 million) in earnings in October and November combined, for a three-year record. CAL said the earnings is attributable to substantial growth in revenues from cargo services.

An institutional investor predicted CAL will post earnings between NT$1.5 billion (US$46.43 million) and NT$2 billion (US$61.91 million) in the fourth quarter of this year, fueling further growth in earnings in 2010.

Besides CAL, EVA also posted record sales in October and November, believing its earnings will improve in 2010.