War pushing demand for long-haul flights, CAL says
By Shelley Shan / Staff reporter, in AMSTERDAM
Although the war between the US and Iran has pushed global oil prices higher, it has also increased demand for direct long-haul flights to Europe as people seek safer routes, China Airlines (CAL) said on Monday.
CAL president Kevin Chen (陳漢銘) said that aviation fuel prices have fluctuated significantly since February amid the ongoing US-Iran war, at one point surging to between US$190 and US$200 per barrel.
Prices fell to between US$130 and US$140 per barrel before rebounding to US$160-US$170, Chen said.
China Airlines president Kevin Chen speaks to reporters at an event in Taoyuan on Sunday.
Photo: Huang Yi-ching, Taipei Times
The volatility has prompted the airline to reassess the load factor of each flight and adjust aircraft capacity accordingly, he said.
Demand in Southeast Asia for passenger and cargo services is high, prompting CAL to deploy larger aircraft on some routes to maximize cargo space and generate additional revenue, he said.
Despite high fuel prices, the airline expects revenue this year to surpass last year’s, potentially reaching a record, Chen said.
“We still have the fourth quarter to go, but I am cautiously optimistic. I believe my team will deliver results that would not disappoint anyone,” he said.
Some travel agents have expressed concern that demand for short-haul flights could outpace demand for long-haul services as rising oil prices drive up airfares.
However, many people heading to Europe used to transit through airports in the Middle East, but conflicts in the region have prompted them to opt for direct flights to Europe for safety reasons, Chen said.
CAL has benefited from the shift, as it operates six direct routes to Europe, serving Frankfurt, Germany; Amsterdam; London; Vienna; Rome and Prague, he said.
“We have also seen Taiwan emerge as a key hub amid changes in travel patterns triggered by wars, particularly for travelers from Northeast and Southeast Asia heading to North America and Europe,” he said.
“Travelers from Vietnam, the Philippines and Japan can fly to Phoenix, Arizona, Seattle or London with connections in Taiwan. The situation presents a great business opportunity for us,” Chen said.
CAL’s monthly cargo revenue is generally NT$4 billion to NT$5 billion (US$125.5 million to US$157 million), he said.
However, recent monthly cargo revenue has reached NT$7 billion to NT$8 billion, with a peak of NT$10 billion, he added.
Cargo demand has been robust, driven by exports of artificial intelligence and semiconductor-related equipment, the company said last month.
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