TAIPEI (Taiwan News) — Chen Da-jun (陳大鈞), chair of Mandarin Airlines, a subsidiary of China Airlines, said its Kaohsiung–Hualien and Taichung–Hualien routes lost NT$70 million (US$2.33 million) annually.

Chen said the two routes have a passenger occupancy of about 30%, and with domestic airfares unchanged for 26 years, continuing operations would increase losses. He hopes the Civil Aviation Administration will approve suspending flights to Hualien, per CNA.

Chen noted that fuel costs have risen from 13% to 21% of operating expenses. He estimated the company could lose NT$600 million this year if airfares remain unchanged.

Flights are essential for outlying islands, but routes to Hualien can be served by road or rail, Chen said. To offset losses from the Hualien routes, the airline has increased in-flight advertising.

Chen hopes the administration will approve adding routes to Kinmen and Matsu. The airline reported that flights to the two regions are more than 80% full.

The airline has 12 aircraft and will add one more before May. Chen said suspending the Hualien routes would allow the planes to be used for Kinmen and Matsu flights, helping to increase revenue.

Chen added the challenges for domestic airline operations go beyond rising oil prices. Higher fees for leasing counters and offices at Taipei Songshan Airport, along with increased ground service charges from Taiwan Airport Services, have further strained operations.

Hualien County Government said suspending the Hualien routes could affect local tourism and make travel to western Taiwan difficult for residents. It called on the Cabinet to support the airline in maintaining flights to Hualien.

According to Hualien’s hotel association, UNI Air’s flights to the county are less than 30% full. To address this, the airline has reduced the routes and operates them only on Fridays and weekends.