January saw EVA Air Cargo maintain momentum from 2020, with cargo revenue jumping 150 percent to US$171 million and yields up 86.2 percent compared to the same month last year. Payload Asia reached out to EVA’s cargo division to talk about their 2020 performance, which routes produced the highest yields, as well as ongoing preparations to expand in cold chain logistics.

Can you describe what 2020 was like for EVA Air’s cargo division? What were some of the moves that the airline had to make to offset the decline in passenger traffic?
EVA Air’s passenger demand decreased significantly due to the global COVID-19 pandemic and bookings on our 85 weekly flights to North America plummeted. We responded by operating passenger flights for cargo only in conjunction with our current freighter fleet and offering flexible terms.

This strategy enabled us to maintain 2020 AFTK at the same level as it was in 2019 while we grew our FTK by 12.91% and yield by 74.55%.
We maximized revenue by effectively using cargo-only passenger flights to make up for lost passenger demand and minimize the gap. We will increase cargo capacity even more with three B777 freighters scheduled to be delivered to us in Q4 of 2021 and Q1 of 2022.

Talking about yields, which routes produced the highest increase? And what do you think contributed to the spike other than lack of capacity?
Taiwan’s excellent geographic location positions it as an ideal hub for air transport from Asia to America. We gained our highest yield increases on those operations and they are the major routes in our EVA Cargo network.

As the pandemic has spread worldwide, people have adapted, consumer behavior has changed and more now work from home. The stay-at-home economy has grown exponentially as demand for computers, servers, electronic parts, semi-conductor parts, e-commerce and auto parts has escalated. At the same time, congestion in marine ports and worker shortages have led to a greater need for sea-to-air cargo and increased airfreight demand.

A statement mentioned preparations to expand into cold chain logistics. Can you share what preparations are being done by the airline for vaccine distribution in Asia Pacific? Is the global vaccine roll-out something you are looking to get involved with?
EVA Air Cargo has years of experience in cold-chain services. Through cooperation with Envirotainer/CSafe, we can coordinate truck, warehouse and airport services in a seamless logistics chain that ensures reliable, top-notch cold-chain transportation. Lockdowns and travel restrictions imposed to contain COVID-19 have delayed our CEIV certification but we will complete the process and have that credential by late March 2021. Pfizer/BioNTech and Moderna are packaging their COVID-19 vaccines at necessary below-freezing temperatures for EVA and other airlines to deliver them to designated locations worldwide.