Taipei:Starlux Airlines is enhancing its flight routes to major technology hubs worldwide, responding to increased demand from Taiwan's growing artificial intelligence and semiconductor industries.
According to Focus Taiwan, the airline has increased flight frequencies on its Taipei-Prague, Taipei-Phoenix, and Taipei-Ontario routes due to rising passenger and cargo demand linked to the semiconductor sector. Walter Liang, a spokesperson for the Taipei-based carrier, stated that the airline is also considering new U.S. destinations like Dallas, Chicago, New York, and Washington, D.C., while expanding capacity in Southeast Asia.
The expansion of Taiwan's AI industry has prompted domestic airlines to align their routes with emerging tech hubs. Prague provides access to Dresden, Germany, where Taiwan Semiconductor Manufacturing Co. (TSMC) is constructing a chip plant, while Phoenix hosts TSMC's manufacturing site in Arizona. Vincent Huang, chairman of the Taiwan Chamber of Commerce in the Czech Republic, emphasized that direct flights are crucial for supporting Taiwanese companies' global expansion.
Before the launch of the Taipei-Prague nonstop service, business travelers often took about 20 hours to reach the Czech capital via connecting flights. The new direct flights are expected to enhance trade, investment, and business exchanges. Starlux has increased its Taipei-Prague service from three to four weekly flights and the Taipei-Phoenix and Taipei-Ontario flights from four to five weekly flights.
To meet the growing business travel demand, Starlux has upgraded its Taipei-Kuala Lumpur route to a daily service using larger A330-900 aircraft, driven by Taiwanese manufacturers expanding into Malaysia and other Southeast Asian markets. Liang also noted that the airline anticipates its fleet to grow to 42 aircraft by the end of 2026 and 48 by 2027, facilitating further network expansion.
The airline expects a revenue growth of over 40 percent next year as new aircraft enter service and additional routes are launched. However, volatile fuel prices remain a significant concern, with aviation fuel costs having risen from US$80 to US$170 per barrel, increasing fuel's share of operating costs from 20 percent to 30 percent.
Despite increased capital expenditures and depreciation due to fleet expansion, the deployment of new aircraft is expected to support revenue growth through network expansion. Starlux plans to continue using financing methods such as sale-and-leaseback arrangements to balance fleet growth with financial stability.