China Airlines to raise wage by NT$2,000 for all employees - Focus Taiwan

Taipei, Aug. 11 (CNA) Taiwanese carrier China Airlines (CAL) has raised the wages of all of its employees by NT$2,000 (US$82.89) per month under a wage restructuring program spurred by a surge in travel and passenger revenue in the post COVID-19 pandemic era.

CAL said the wage hike, which was approved at a board meeting on Wednesday and will take effect Sept. 1, came after the airline’s revenue from passenger flights soared 1,351 percent from a year earlier in the first half of 2023.

The airline said overall consolidated sales rose 21.33 percent year-over-year to NT$89.89 billion in the first half of the year, but it did not break down the sales figure into specific passenger and cargo revenue numbers.

CAL posted a net profit of NT$4.60 billion in the six-month period, up from NT$3.49 billion a year earlier, with earnings per share at NT$0.77, up NT$0.19 from a year earlier.

In the second quarter alone, CAL generated consolidated sales of NT$47.19 billion, up 28.05 percent from a year earlier, and net profit hit NT$3.29 billion in the same three-month period, up roughly eight-fold from the second quarter of 2022.

Also, passenger flight revenue in the April-June period rose 25 percent from a quarter earlier, according to the airline.

CAL said the strong passenger flight showing resulted from an explosion in global travel demand after COVID-19 restrictions were eliminated.

That demand was supported by the addition of new routes and resumption of flights that had been suspended due to the pandemic, it said.

A sharp decline in fuel costs, which analysts say account for about 40 percent of Taiwanese airlines’ total costs, also helped improve the carrier’s bottom line, it said.

CAL’s most recent addition to its network was Prague on July 18, and it plans to expand its network within East Asia with new direct flights between Kaohsiung and Gimpo in South Korea starting Aug. 26 and Taipei and Kumamoto of Japan starting Sept. 18.

The carrier said it has also focused on medium to longer-term cargo operations by tailoring its services to special clients such as semiconductor firms, clients that need cold chain transportation services, and engine suppliers, helping the carrier generate higher sales.

In addition, CAL said it will forge closer ties with international carriers to further boost cargo service revenue.

(By Jiang Ming-yan, Oscar Wu and Frances Huang)

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Article source: https://airlines.einnews.com/article/649390521/Vk5hnjOQufXuKH3L?ref=rss&ecode=vaZAu9rk30b8KC5H

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