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Dropping fuel prices cast positive market outlook: Evergreen (update)

Dropping fuel prices cast positive market outlook: Evergreen (update)

Taipei, March 23 (CNA) Evergreen Group (??), a Taiwan-based conglomerate providing shipping and logistic services, said Monday that plummeting fuel prices across the globe could help the industry generate more profits this year. Operating costs of both its air and marine shipping businesses could drop by 20 percent compared with the same period of last year, said Group Vice Chairman Hsieh Chih-chien (???). As a result, fares have dropped by 20 percent for regional flights such as those to Macau and Hong Kong, and 10 percent for long-haul flights to the United States and European destinations, added Chang Kuo-wei (???), chairman of Evergreen's affiliate, EVA Airways Corp. (EVA) Air cargo business has also been on the rise since the latter half of 2014, Chang said, explaining that whether the sector can remain lucrative will mainly depend on the market performance of the information technology industry. Thanks to a recovering global economy and especially positive gross domestic product prospects for the United States, Hsieh said the group is expecting a promising market in 2015. "Evergreen has been working a lot in the U.S. market, and with more vessels and aircraft to be added into the Taiwan-U.S. network, we are very optimistic about our performance," Hsieh said during the company's annual briefing. He noted as an example that EVA, the nation's second-largest air carrier, will take delivery of 12 new aircraft this year, which will be used on U.S. routes. EVA said it will launch three weekly round-trip flights between Taipei Taoyuan International Airport and Houston, Texas beginning June 19. The airline said it hopes the new route could expand its market base to the southern U.S. EVA currently operates flights to New York, Los Angeles, San Francisco, Seattle and the U.S. unicorporated territory of Guam. In addition to Houston, EVA said it is planning to offer flights serving Chicago, Illinois and Istanbul in 2016. (By Lee Hsin-Yin)


Updated : 2021-07-26 04:12 GMT+08:00