China Airlines Ltd., Taiwan's largest carrier, led airline shares higher in Taipei trading after a report that the island may seek additional flights to mainland China to cope with rising demand.
China Airlines jumped 6.2 percent to NT$9.59, its highest since April 16, while Eva Airways Corp., Taiwan's second-largest airline, surged 6.7 percent to NT$10, its highest since April 22.
President Ma Ying-jeou said the number of direct flights between China and Taiwan should be increased to 540 a week from 270.
Most cross-strait flights operate at between 90 percent and 95 percent capacity, and the quality of service may suffer without additional flights, the report said, citing Ma, who spoke at a meeting with a group of overseas Taiwanese from the U.S. at his office yesterday.
Taiwan and China on April 26 agreed to more than double the weekly scheduled flights to 270 from 108.
