Shares of China Airlines and EVA Airways staged a rally in Monday morning trade on increasing optimism toward their earnings outlook after direct flights between Taipei International Airport, formerly known as Songshan Airport, and Tokyo’s Haneda Airport resumed a day earlier following a hiatus of 31 years, dealers said.
China Airlines rose 4.61% to NT$24.95 (US$0.83), while EVA Air gained 6.47% to NT$32.90. China Airlines and EVA Air will provide 14 return Songshan Haneda flights each week. The resumption of direct flights between the airports is expected to boost the number of Japanese tourists to Taiwan by about 10% a year. The strong buying seen reflects investors’ upbeat mood about the two carriers.
Hua Nan Securities issued a target price of NT$28 for China Airlines and NT$38 for EVA Air.