STARLUX Airlines Co Ltd (2646.TWO) Q1 2025 Earnings Report

Revenue: 11,194,839,000 TWD; YoY +77.82%; QoQ +16.68%. Explanation: Revenue benefited from recovering passenger demand and higher load factors, supported by network normalization and fare mix improvements. Gross Profit: 2,418,459,000 TWD; YoY +132.34%; QoQ +16.84%. Margin: 21.6% (Gross Profit / Revenue = 2,418,459,000 / 11,194,839,000). Explanation: Margin expansion driven by volume leverage and better product mix as capacity returns; cost of revenue totaled 8,776,380,000 TWD, implying ongoing fixed-cost absorption benefiting from higher volumes.

EBITDA: 1,889,593,000 TWD; EBITDA Margin: 16.88%. Explanation: EBITDA growth signals operating efficiency improvements and depreciation/amortization parsing (702,638,000 TWD) consistent with a capital-intensive airline asset base.

Operating Income: 1,186,955,000 TWD; Operating Margin: 10.60%; YoY +722.01%; QoQ N/A. Explanation: Strong operating leverage as revenue growth outpaced operating expense growth; total operating expenses were 1,231,504,000 TWD (SG&A) plus other cost lines, with operating income reflecting substantial margin expansion YoY.

Net Income: 914,883,000 TWD; Net Margin: 8.17%; YoY +1,104.63% (per the provided earnings metrics); QoQ +44.08%. Explanation: Positive earnings driven by top-line expansion and improved operating leverage; non-operating items and interest costs remain relevant given the airline’s asset-intensive profile.

EPS (Diluted): 0.30 TWD; YoY +788.07%; QoQ +20.00%. Weighted Average Shares Outstanding: 3,008,741,264. Interest expense: 304,281,000 TWD; Depreciation & Amortization: 702,638,000 TWD. Cost of Revenue: 8,776,380,000 TWD; Operating Expenses: 1,231,504,000 TWD. Net income before tax: 863,891,000 TWD; Income tax expense: 50,992,000 TWD. Earnings yield metrics reflect a healthier profitability profile in QQ1 2025 versus prior periods.

Note: The earnings transcript/transcript content was not provided in the data set. Consequently, management quotes and thematic highlights from the QQ1 2025 call are unavailable. The following themes are based on the quantitative results and general industry context: (1) Strategy: leverage capacity recovery and network optimization to drive higher volumes; (2) Operations: improve load factors and product mix to lift margins; (3) Market Conditions: continued normalization of travel demand post-pandemic in Taiwan and the broader region; (4) Financial Trajectory: margin expansion and earnings growth supported by revenue recovery and cost discipline, with ongoing considerations around financing costs and asset depreciation.

Positive near-term momentum is supported by the QQ1 2025 results: revenue growth and margin expansion point to improving profitability in a recovering airline market. The absence of forward guidance and limited balance sheet visibility require a cautious stance; however, the reported metrics suggest STARLUX is benefiting from post-pandemic demand normalization and capacity ramp. Investors should monitor capacity utilization, yield management, fuel hedging strategies, and financing needs as catalysts and risk factors. Given the data, the stock presents a constructive risk-adjusted opportunity for investors with a time horizon aligned to travel demand normalization and the firm’s ability to maintain operating leverage while managing debt and liquidity.