AI cargo demand lifts EVA Air and China Airlines earnings as fuel costs climb

Taiwan's two largest carriers held up in the first nine months of 2026 as strong AI-driven cargo demand offset rising fuel costs, while STARLUX Airlines slipped into losses. EVA Air and China Airlines both kept earnings at high levels in the third quarter and the first nine months; STARLUX, with cargo making up just over 10% of its revenue, was hit harder by fuel prices.

China Airlines posted NT$185.94 billion in consolidated revenue for the first nine months, with net profit attributable to the parent of NT$11.002 billion and earnings per share of NT$1.8, both records for the period; third-quarter revenue was NT$65.125 billion, net profit NT$4.42 billion and EPS NT$0.72. EVA Air reported third-quarter consolidated revenue of NT$66.094 billion, up 26%, net profit of NT$6.799 billion, up 15.7%, and EPS of NT$1.26; for the first nine months, revenue was NT$194.38 billion, up 19.5%, net profit NT$18.915 billion, up 2.3%, and EPS NT$3.5.

Cargo was the key earnings driver. EVA Air said air cargo benefited from sustained strong demand for AI servers and semiconductors, plus stocking demand for new consumer electronics, lifting both volumes and yields; cargo capacity rose 5.3% in the first nine months, tonnage 0.6% and cargo unit revenue 25.3%. Its third-quarter cargo revenue grew 34.5% and first-nine-months cargo revenue 27%, while the passenger load factor reached 81.5% over the first nine months.

October figures extended the momentum. China Airlines' October revenue was NT$22.156 billion, up 22.36% to a record for the month, with cargo revenue of NT$8.22 billion, up 48.05%, and passenger revenue of NT$12.001 billion, up 9.2%. EVA Air's October consolidated revenue reached NT$23.182 billion, up 22.63%, with passenger revenue of NT$13.536 billion, a record for the month, and cargo revenue of NT$6.869 billion, up 46.17%. STARLUX posted a third-quarter net loss of NT$293 million on revenue of NT$16.282 billion and a first-nine-months net loss of NT$638 million, as international oil prices ran 61% higher than a year earlier; its cargo revenue grew 45.2% to NT$5.19 billion in the first nine months but still accounted for only 11.6% of total revenue, carried mainly in passenger aircraft belly holds, with dedicated freighters to arrive from 2028.