China Airlines Ltd. and EVA Airways Corp., top two air passenger carriers of Taiwan, expect second quarter profits to recover on the prevailing inexpensive prices of aircraft turbine fuel.
China Airlines' Boeing 747-400, which was hit by turbulence, sits on at the tarmac at Indonesia's international airport Ngurah Rai in Bali September 20, 2008. At least 11 people were hurt, suffering from broken necks and other fractures, after the plane was hit by a turbulence before landing at the resort island.
The China Economic News Service reported institutional investors anticipate earnings this second quarter for the two Taiwan airline carriers based on the low closing price of aviation turbine fuel as of end May.
In a year, China Airlines Ltd. expends about 18 million of aircraft turbine fuel, while EVA Airways Corp., 13 million barrels of aircraft turbine fuel.
But both are expected to incur savings since as of the end of May, the average price of aviation turbine fuel settled at $123 per barrel, 7.5 per cent less or $10 off from $133 per barrel in April.
Institutional investors forecast, citing figures from China Airlines' monthly consumption, the airline can save at least NT$45 million or US$1.5 million every month.
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