China Airlines' chairman says company may post 2010 profit

“We may have a chance to be profitable next year as the economic recovery boosts demand for our cargo and passenger services,” Chairman Philip Wei told reporters in Taoyuan, where Taiwan's biggest airport is located. The company celebrated its 50th anniversary yesterday.

China Airlines, based in Taipei, in October posted a third-quarter loss of NT$2.62 billion, narrower than the NT$5.88 billion deficit it reported a year earlier. Improving cross-strait ties have allowed the company to add more mainland flights, offsetting a global slump in passenger and air-cargo demand. Airlines worldwide may lose a total of US$11 billion this year, according to the International Air Transport Association.

China Airlines climbed 0.5 percent to close at NT$10.75 on the Taiwan Stock Exchange. The stock has lost 1.8 percent this year, compared with the 69 percent gain on the benchmark TAIEX index.

Direct flights between Taiwan and the mainland, operated exclusively by Taiwanese and Chinese carriers, more than doubled to 270 a week from Aug. 31. The two sides ended a six-decade ban on direct services after Taiwan President Ma Ying-jeou took office in May 2008, abandoning his predecessor's pro-independence stance.

China regards Taiwan as part of its territory. Passengers previously had to travel though a third place, such as Hong Kong.

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