China Airlines posted record first-half earnings as Taiwan’s flag carrier capitalized on surging travel demand during the Lunar New Year holiday period and sustained passenger traffic recovery.
The airline reported net income of NT$8.04 billion ($255 million) for the six months ended June, marking a 24.6% increase from the previous year and setting a new historical high. Earnings per share reached NT$1.32, representing the second-highest result for the period in company history.
Second-quarter performance drove much of the gains, with revenue hitting NT$51.33 billion ($1.63 billion) and net profit of NT$3.86 billion ($122 million), up 11.9% year-over-year. The quarterly results set a new record for the April-June period.
Cargo operations provided additional lift, with freight revenue climbing 18.75% compared to the prior year. The carrier attributed the growth to increased capacity, steady demand for AI servers and electronics, plus a rush of shipments ahead of anticipated U.S. tariff implementations.
Despite the strong results, challenges remain for the Taipei-based airline. The company faces intensifying competition on key routes and regulatory pressures that have historically limited its expansion opportunities.
China Airlines has been aggressively expanding its network, including a partnership with Southwest Airlines for North American connections and plans to launch Phoenix service in December. The carrier also announced fleet upgrades, adding free Wi-Fi across three aircraft types.
The airline’s push into premium economy class reflects broader industry trends toward higher-margin cabin products, though execution risks persist as carriers balance service improvements with operational costs.
