News / Starlux Airlines raises $293m in IPO and aims to build freighter fleet

Photo: Starlux Airlines

Starlux Airlines, the airline founded by ousted Evergreen scion Chang Kuo-wei, was listed on the Taiwan Stock Exchange’s main board today, after an IPO that raised TW$9.4bn ($293m).

The proceeds will generate working capital for Starlux, which is expanding its cargo business with a recent order for five A350 freighters to be delivered in 2027, with an option for five more, which, it says, it will take up.

Starlux’s primary focus remains on tapping into Taiwan’s potential as a key transit hub for the Asia-Pacific region and chairman Mr Chang noted that the island was an ideal stopover for routes connecting South-east Asia with North America.

Mr Chang, the youngest son of Evergreen and EVA Airways late founder Dr Chang Yung-fa, was EVA chairman but founded Starlux in 2016, after being ousted from the family business by his half-brothers.

Starlux operates 31 routes to 27 destinations, with plans to expand the network. The fleet, consisting of Airbus aircraft including A350-900s and A350-1000s, is capable of flying directly to major cities in Europe and North America, with a range of 8,000 nautical miles. For routes within Asia, flights to key cities take less than five hours from Taipei. By year-end Starlux will have 26 aircraft.

Mr Chang said: “While new-generation aircraft offer greater range, routes from North America to South-east Asia still face limitations, as they can typically only reach as far as Hong Kong without requiring a stop. Taiwan serves as the best stopover for connecting these markets.”

Starlux had an inauspicious start, launching flights in January 2020, at the start of the Covid-19 pandemic. The consequent global halt in international tourism and flights hurt the carrier’s earnings, and it only achieved black ink in 2023, with net profit of TW$149.2m (US$4.86m).

Currently, with no freighters, Starlux only carries belly cargo. However, thanks to the growing demand for air freight, its cargo operations have seen better turnover, with revenues reaching NT$1.76 by ($54.7m) from January to August, up 83% on last year. And cargo sales growth has overtaken that of passenger revenue, which rose 62% during the period.

Due to this, Starlux plans to exercise options to buy five more A350F freighters, taking its dedicated cargo fleet to 10 aircraft.

CEO Glenn Chai said Starlux was getting more cargo business from its home country, particularly Taiwan’s AI and microchip industries that have generated more exports.

Starlux’s stock price closed nearly 19% higher after its first day of trading, ending at TW$30.75 ($0.96), giving it a market capitalisation of TW$80.1bn ($2.5bn).