Taiwan-based China Airlines saw cargo revenues and volumes soar in the second quarter of the year as high-tech cargo demand boosted performance.
The cargo division saw second quarter cargo revenues increase by 43.9% year on year to T$23.6bn, while freight tonne kms (FTK) were up 8.6% to 1.5bn and capacity increased by 2.6% to 2.1bn AFTK.
With demand increasing faster than capacity, the cargo load factor reached 70.5% from 66.6%. Revenues grew faster than volumes due to improved yields, which ended the quarter at T$15.78 per FTK against 11.01 a year earlier.
“In addition to existing high-tech cargo demand such as AI servers and semiconductor equipment, seasonal fruits and high-value spot cargo also boosted revenues [in June]helping to maintain stable cargo performance,” the airline said.
It was also positive for the coming quarter: “Looking ahead to the third quarter, sustained demand for the shipment of AI servers, semiconductors, and info-comm related products is expected to maintain steady performance across key Asian export markets.
“China Airlines is closely monitoring market dynamics to maximise passenger and cargo capacity by actively securing high-yield charter and block-space opportunities. The gradual decline in international oil prices is expected to further expand profit margins.”
The volume growth comes as Taiwan’s high-tech industries have seen demand rapidly grow on the back of the growing AI, semiconductor and data centre markets.
The Taiwan Semiconductor Manufacturing Company is the world’s largest contract chipmaker and controls over half of the global semiconductor foundry market and manufactures roughly 90% of the world’s most advanced microchips.
Meanwhile, China Airlines is looking to capitalise on the growing demand with the addition of new freighter aircraft.
In November, the airline confirmed to Air Cargo News that it has expanded its order for Boeing 777-8F aircraft to eight units, while it has also purchased four 777Fs.
On the other hand, it has also announced it will sell four of its older Boeing 747-400Fs to Cargolux.
