EVA Airways (2618) Q3 2024 earnings summary

Executive summary

• Operating revenue for the first nine months of 2024 rose 12.4% year-over-year to NT$164,449 million, with net profit up 29% to NT$22,708 million, driven by growth in both passenger and cargo services.

• Passenger and business travel have rebounded strongly, surpassing pre-pandemic levels, while air cargo demand remains robust due to tech and e-commerce growth.

• The company is expanding its fleet and network, resuming and increasing flight frequencies, and upgrading both hardware and service systems.

• Gross margin improved to 24% from 22% year-over-year, reflecting higher yields and cost control.

• Cash dividends of NT$9.72 billion were distributed in 2024, up from NT$4.29 billion in 2023.

Financial highlights

• Q3 2024 operating revenue increased 7.3% year-over-year; net operating income up 56.1% to NT$12,284 million.

• Operating income for the nine months reached NT$29.01 billion, up 32% year-over-year.

• Earnings per share for the first nine months reached NT$3.98, up 30.5% year-over-year.

• Total assets as of September 30, 2024, were NT$330,671 million, with total equity up 14.4% year-over-year.

• Cash and cash equivalents increased to NT$75.3 billion as of September 30, 2024.

Outlook and guidance

• Global passenger revenue is expected to surpass pre-pandemic levels, accounting for 75% of total revenue in 2024.

• Asia Pacific airlines are leading growth in international passenger demand, far exceeding the global average.

• Cargo market demand remains strong, especially in Asia Pacific, driven by e-commerce and tech products.

• Adoption of new IFRS standards in 2025 and 2027 is not expected to materially impact financials.

• The company continues to evaluate the impact of climate change on accounting estimates.