EVA Airways Corp., Taiwan’s secondlargest carrier, posted a wider loss in the second quarter because of a slump in the island’s air-cargo demand. The airline reported a net loss of NT$1.37 billion in the three months ended June 30, compared with NT$1.07 billion a year earlier.

EVA Air’s second-quarter revenue dropped 2 per cent from a year earlier to NT$22 billion, after a 0.7 per cent fall in the previous three months.

Taiwan’s air cargo volumes have fallen as lower wages in China have wooed manufacturers to shift production of computers, mobile phones and other goods to the mainland. EVA Air and larger rival China Airlines, which are both barred from fl ying regularly to China, rely on air-freight for more than 40 per cent of their revenue.

The carrier’s fi rst-half loss widened to NT$1.69 billion, from NT$845 million a year earlier, it said. Sales fell 1.4 per cent to NT$44.5 billion. China Airlines, Taiwan’s largest carrier, reported a fi rst half loss of NT$868.3 million, compared with a profi t of NT$128.1 million a year earlier.