Starlux Airlines swings to profit in Q1

Taipei, May 13 (CNA) Starlux Airlines, Taiwan's newest carrier, announced a plan Wednesday to raise funds by issuing corporate bonds as it reported turning a profit in the first quarter of 2026 after finishing 2025 with two money-losing quarters.

In a statement Wednesday, Starlux said it had a first-quarter net profit of NT$910 million (US$28.87 million), or NT$0.3 in earnings per share, compared with a loss per share of NT$0.15 and NT$0.07 in the third and fourth quarters of 2025, respectively.

During the January-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, Starlux, which began operating in 2020, said the U.S.-Israeli war on Iran had led some travelers to reroute through Taiwan, boosting demand.

In the first quarter, the average load factor -- an industry metric that measures percentage of passenger capacity used -- hit 87 percent, the carrier 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 AI-related devices.

The carrier also said some buyers shifted to air cargo services from marine services amid growing geopolitical unease to boost demand further.

Meanwhile, the carrier said it 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 carrier also plans to sell three newly received A330-900 aircraft to FCB Leasing Co and Taishin D.A. Finance Co. but will retain them through a leasing arrangement.