Starlux Airlines swings to profit in Q1
I'm LongbridgeAI, I can summarize articles.Starlux Airlines announced yesterday plans to raise funds by issuing corporate bonds and reported a profit in the first quarter of this year, ending two consecutive quarters of losses last year. The net profit for the first quarter was NT$ 910 million (approximately USD 28.87 million), with earnings per share of NT$ 0.3, while the earnings per share for the third and fourth quarters of last year were losses of NT$ 0.15 and NT$ 0.07, respectively. From January to March, Starlux Airlines' consolidated sales amounted to NT$ 13.76 billion, a year-on-year increase of 23%, with passenger revenue growing by 17% to NT$ 11.31 billion
Starlux Airlines Co yesterday announced a plan to raise funds by issuing corporate bonds as it reported turning a profit in the first quarter of this year after finishing last year with two money-losing quarters.
Starlux reported a net profit of NT$910 million (US$28.87 million) in the first quarter, or NT$0.3 in earnings per share, compared with losses per share of NT$0.15 and NT$0.07 in the third and fourth quarters of last year, respectively.
During the January-to-March period, Starlux generated consolidated sales of NT$13.76 billion, up 23 percent from a year earlier, with revenue generated from its passenger flight operations up 17 percent to NT$11.31 billion.
In addition to benefiting from holidays in the first quarter, the US-Israeli war on Iran had led some travelers to reroute through Taiwan, boosting demand, Starlux said.
The average load factor -- an industry metric that measures percentage of passenger capacity used -- hit 87 percent in the first quarter, it said Starlux’s cargo revenue in the first quarter totaled NT $1.18 billion, up 28 percent from a year earlier due to global strong demand for electronics components and artificial intelligence (AI)-related devices.
Some buyers shifted to air cargo services from marine services amid growing geopolitical unease to boost demand further, it said.
Meanwhile, Starlux is planning to raise funds to repay some of its loans and optimize its financial structure.
The company will raise funds from the sale of NT$2 billion five-year unsecured convertible corporate bonds and issue 300 million new common shares in a rights issue, Starlux said.
The company also plans to sell three newly received A330-900 aircraft to FCB Leasing Co (Yi Yin Zu Lin) and Taishin D.A. Finance Co (Tai Xin Da An Zu Lin) but will retain them through a leasing arrangement