TAIPEI (Taiwan News) — Starlux Airlines reported Tuesday a sharp Q2 profit drop of NT$8 million (US$260,000), with Chair Chang Kuo-wei (張國煒) warning that a weak Q3 will continue to weigh on the carrier until the last quarter.

Chang said the airline faced “pressures from inside and out,” citing high upfront staffing costs and external disruptions such as tariffs and visa issues that hurt passenger traffic, particularly on US and Japan routes, per CNA. The downturn followed strong earnings in Q1, when Starlux benefited from steady travel demand.

The airline is preparing for the arrival of more than 10 new aircraft next year. "This year, we're training flight attendants and pilots, with several thousand flight attendants alone," Chang said.

He said manpower costs may appear burdensome but are necessary to avoid idle aircraft and higher financing expenses once the planes are delivered.

Externally, tariff uncertainty and weak summer demand have deepened the challenges. Chang noted that Japan-bound travel slumped after the so-called “tsunami prophecy,” while US-bound traffic was weighed down by visa delays and subdued student and business travel.

Unlike rivals, Starlux has no dedicated freighter fleet, leaving it unable to offset losses with cargo revenue. While other airlines benefited from pre-tariff shipping demand, Starlux was fully exposed to the downturn in passenger traffic.

For the first half of 2025, Starlux still reported net profit of NT$923 million, up 2.54% from a year earlier, with EPS of NT$0.31. Looking ahead, Chang said Q4 should bring recovery as tariff policies stabilize and travel demand rebounds, though the recovery may take time.