TAIPEI (TVBS News) — Taiwan's newest luxury carrier continues to navigate turbulent financial headwinds amid global economic uncertainty, its founder told investors Friday (June 13). K.W. Chang (張國煒), chairman of Starlux Airlines (星宇航空), Taiwan's upstart premium airline, addressed shareholders with a sobering assessment of the company's financial position, revealing accumulated losses exceeding NT$10 billion (approximately US$338.9 million) stemming from pandemic-era disruptions. Despite achieving profitability only last year, Chang emphasized that financial recovery must take precedence over shareholder returns, definitively ruling out dividend distributions until the airline's balance sheet strengthens.
The airline executive spoke candidly about immediate financial challenges, acknowledging that escalating international tariff disputes had negatively impacted the company's second-quarter performance while creating substantial uncertainty for operations through the remainder of 2025. Chang defended the carrier's aggressive growth strategy against industry critics, insisting that rapid fleet and route expansion remains essential for establishing competitive positioning in the cutthroat global aviation market. He offered particular praise for Starlux employees, crediting their dedication and performance during the airline's ambitious scaling efforts that have transformed the company from a startup into Taiwan's third major international carrier in just a few years.
Drawing a stark contrast with Taiwan's aviation history, Chang referenced the cautionary example of TransAsia Airways (復興航空), a defunct Taiwanese carrier that required nearly six decades to develop international routes — a timeline he characterized as incompatible with modern aviation economics. The chairman repeatedly emphasized his appreciation for staff efforts during this critical growth phase while reaffirming that restoring the airline's financial foundation remains paramount among corporate objectives. Looking forward, Chang offered shareholders a measured promise, expressing optimism about potential dividend distributions beginning next year while underscoring his personal commitment to achieving the financial benchmarks necessary to make such payouts possible.
The Starlux chairman identified several external threats to the airline's recovery trajectory, specifically citing U.S. President Trump's economic policies — including escalating tariff regimes and restrictions on international student visas — as factors creating broader macroeconomic instability that could impact travel demand. Chang noted that the company is closely monitoring civil unrest in Los Angeles, a key destination in the carrier's transpacific network, for potential operational impacts. Despite this constellation of challenges facing the young airline, the chairman concluded his remarks with cautious optimism, articulating his determination to navigate these obstacles and deliver a successful financial performance for the remainder of the fiscal year. ◼
