Starlux aims to begin issuing dividends as early as 2026

Taipei, Sept. 25 (CNA) Starlux Airlines said Wednesday that it hopes to eliminate its cumulative losses and begin paying dividends to shareholders as early as 2026, as it looks to capitalize on Taiwan's growing role as a transit hub.

During an earnings announcement, the company said additional paid-in capital from its stock market listing in the fourth quarter of this year would allow it to clear its cumulative losses of around NT$8.15 billion (US$255 million).

After doing so, dividends could be paid to shareholders as early as 2026, the company said.

Starlux Chairman Chang Kuo-wei (張國煒) cited several reasons for the company's optimism, with the first being the planned completion of Taoyuan International Airport's Terminal 3 in 2027.

"Once Terminal 3 is completed, additional airport slots will be released," which will ease the current high demand and benefit newer airlines, by allowing them to expand their route maps, Chang said.

Since Terminal 3 will mainly serve flights to North America and Southeast Asia, Starlux will be able to offer an extremely convenient experience to customers transiting between those regions, Chang said.

Meanwhile, the terminal's new VIP facilities will also allow the airline to cement its position in the luxury travel market, he added.

In order to meet customer demand at that time, Chang said Starlux is planning to expand its fleet to more than 50 planes by 2026, up from the current 24.

He argued that while Taiwan's airport operations need to continue making improvements, its potential in the transit market has been "vastly underestimated."

Currently, neither Indonesia, with its population of 270 million, nor Thailand, with its "massive" middle class, have direct flights to North America, making Taiwan an ideal transfer location, Starlux CEO Chai Chien-hua (翟健華) said.