TAIPEI (Taiwan News) — China Airlines reported its strongest financial performance in 65 years on Monday, with Chair Kao Shing-hwang (高星潢) crediting bold restructuring and a flexible growth strategy for the turnaround.

The carrier posted consolidated revenue of NT$203.88 billion (US$6.81 billion) and a net profit of NT$14.38 billion last year, or NT$2.38 per share, per CNA. The results mark a sharp recovery from pandemic-era disruption and follow a sweeping internal overhaul.

Kao said the company’s pandemic-era financial reforms—what he described as “clearing the drainage”—targeted inefficiencies in routes, pricing, and operations.

With passenger flights grounded during COVID-19, China Airlines relied heavily on cargo operations, which became the airline’s financial backbone and created room for deeper restructuring.

This year, the airline launched a fleet renewal plan worth over NT$100 billion. The order includes 10 Airbus A350-1000s, 10 Boeing 777-9s, and four Boeing 777-8 freighters, with deliveries scheduled to begin in 2029.

In addition, 24 Boeing 787s are expected, along with the final deliveries of 28 A321neos by 2027. The new aircraft will gradually replace older A330s, helping reduce fuel costs and improve service quality.

The A350-1000’s range opens up potential routes to inland US cities like Dallas and possibly Houston, while the high-capacity 777-9 will serve major hubs such as Los Angeles. Washington, DC is also on the radar.

Despite uncertainties in delivery timelines, Kao described the airline’s expansion strategy as “following water and grass”—a flexible model guided by market demand. “Where there’s demand, we’ll go,” he said.