Mandarin Airlines Faces Low Hualien Route Load Factors, Chairman Chen Ta-chun Hopes to Suspend Flights: 'Struggling is Meaningless'
Mandarin Airlines Chairman Chen Ta-chun stated that rising international oil prices are causing significant losses, with an estimated deficit of NT$600 million this year. He revealed that the Kaohsiung-Hualien route has only a 20% load factor, and Taichung-Hualien about 30%, projecting a NT$70 million loss for these two routes annually. Chen hopes the Civil Aeronautics Administration (CAA) will approve the suspension of Hualien flights, planning to reallocate capacity to other outlying island routes.
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- 📰 Published: April 8, 2026 at 14:08
- 🔍 Collected: April 8, 2026 at 15:00 (52 min after Published)
- 🤖 AI Analyzed: April 15, 2026 at 17:17 (170h 17m after Collected)
Rising international oil prices, driven by the Middle East situation, have led Mandarin Airlines Chairman Chen Ta-chun to tell the media that while oil originally accounted for 13% of costs, it has now risen to 21%. The company anticipates this year's revenue of NT$6 billion will incur a 10% loss, approximately NT$600 million, due to oil prices. To secure more revenue, the airline will actively develop in-flight advertising resources, such as incorporating mineral water packaging and napkins into advertising collaborations.
Chen Ta-chun disclosed that current flights to Hualien are continuously losing money. Last year, a flight from Kaohsiung to Hualien once had only 5 passengers. Currently, the Kaohsiung-Hualien route's load factor is only 20%, and Taichung-Hualien is about 30%. 'Even with a half-price discount to 'compete' with Taiwan Railways' Tze-Chiang Limited Express, there's no increase,' he said. Based on new oil prices, the two routes are projected to lose NT$70 million annually.
According to Mandarin Airlines' booking statistics for this week, the Kaohsiung-Matsu route has a 94% load factor, with 87% on return flights. Kaohsiung-Kinmen boasts an even higher 99.39% load factor, with 88% on return flights. Other routes, such as Songshan and Taichung to Kinmen, also have average load factors above 80%.
Facing continuous losses on the Hualien routes, Chen Ta-chun stated, 'I keep wondering why we're still flying. It's meaningless to struggle, and it's not irreplaceable; there are railways and highways as alternatives.' He added, 'We are willing to fly to Kinmen because there are no other transportation options.'
Current Mandarin Airlines flights from Taichung to Hualien operate three times a week, with a fare of NT$2,472. Kaohsiung to Hualien flies daily, with a fare of NT$2,329. Chen Ta-chun hopes the CAA can approve the suspension of the two Hualien routes. He noted that if rail and road transport are interrupted in the future, additional flights could still be dispatched for support. He revealed plans to transfer capacity to other outlying island routes: 'At least if one flight is withdrawn, one more (outlying island route) can be added.'
Chen Ta-chun stated that domestic airfares have not increased for 26 years, but the basic monthly wage has risen by about 53% in the past 12 years, and hourly wages by about 70%. Chain beef noodle and braised pork rice prices have also increased by 61% and 82% respectively. Rent for counters and offices from the CAA has also increased by 23%, and Taiwan Airport Services fees have also been adjusted upwards. Only Mandarin Airlines has been unable to raise ticket prices for passengers.
Regarding how much ticket prices would need to increase to avoid suspending Hualien flights, Chen Ta-chun believes that even striving for an overall 10% increase is difficult. 'How can we ask the few passengers on an entire flight to bear the costs?' he questioned.
The CAA, in November 1999, calculated the upper and lower limits of domestic route fares for airlines based on 14 cost items submitted by the airlines, allowing operators to set prices within these limits. In 2014, the CAA further approved a floating mechanism for oil prices among the 14 cost items, setting a threshold for fare adjustments. (Edited by Chen Ching-fang) 1150408
Chen Ta-chun disclosed that current flights to Hualien are continuously losing money. Last year, a flight from Kaohsiung to Hualien once had only 5 passengers. Currently, the Kaohsiung-Hualien route's load factor is only 20%, and Taichung-Hualien is about 30%. 'Even with a half-price discount to 'compete' with Taiwan Railways' Tze-Chiang Limited Express, there's no increase,' he said. Based on new oil prices, the two routes are projected to lose NT$70 million annually.
According to Mandarin Airlines' booking statistics for this week, the Kaohsiung-Matsu route has a 94% load factor, with 87% on return flights. Kaohsiung-Kinmen boasts an even higher 99.39% load factor, with 88% on return flights. Other routes, such as Songshan and Taichung to Kinmen, also have average load factors above 80%.
Facing continuous losses on the Hualien routes, Chen Ta-chun stated, 'I keep wondering why we're still flying. It's meaningless to struggle, and it's not irreplaceable; there are railways and highways as alternatives.' He added, 'We are willing to fly to Kinmen because there are no other transportation options.'
Current Mandarin Airlines flights from Taichung to Hualien operate three times a week, with a fare of NT$2,472. Kaohsiung to Hualien flies daily, with a fare of NT$2,329. Chen Ta-chun hopes the CAA can approve the suspension of the two Hualien routes. He noted that if rail and road transport are interrupted in the future, additional flights could still be dispatched for support. He revealed plans to transfer capacity to other outlying island routes: 'At least if one flight is withdrawn, one more (outlying island route) can be added.'
Chen Ta-chun stated that domestic airfares have not increased for 26 years, but the basic monthly wage has risen by about 53% in the past 12 years, and hourly wages by about 70%. Chain beef noodle and braised pork rice prices have also increased by 61% and 82% respectively. Rent for counters and offices from the CAA has also increased by 23%, and Taiwan Airport Services fees have also been adjusted upwards. Only Mandarin Airlines has been unable to raise ticket prices for passengers.
Regarding how much ticket prices would need to increase to avoid suspending Hualien flights, Chen Ta-chun believes that even striving for an overall 10% increase is difficult. 'How can we ask the few passengers on an entire flight to bear the costs?' he questioned.
The CAA, in November 1999, calculated the upper and lower limits of domestic route fares for airlines based on 14 cost items submitted by the airlines, allowing operators to set prices within these limits. In 2014, the CAA further approved a floating mechanism for oil prices among the 14 cost items, setting a threshold for fare adjustments. (Edited by Chen Ching-fang) 1150408