Taiwan’s major airlines are embarking on an ambitious expansion into the North American market. This strategy is fueled by both market demands and the need for diversification due to domestic challenges.
Taiwan Airlines’ North American Expansion
From the second half of 2025, three major airlines—China Airlines (CAL), EVA Air, and Starlux Airlines—will add new routes to North America. This includes CAL’s new destination of Phoenix, EVA Air’s expansions into Dallas and Washington, D.C., and Starlux’s routes to Ontario, California, and Phoenix.
Increased Flight Options
These new routes will create approximately 20 direct flights per week between Taiwan and the United States. Taiwanese carriers are also establishing codeshare agreements with U.S. airlines, vastly increasing access to other destinations.
Market Dynamics and Passenger Traffic
According to Lin Yi-chi, an aviation analyst at Horizon Securities, this expansion is essential for survival rather than mere profit-seeking. Taiwan faces significant demographic challenges such as an aging population, which constrains the outbound tourism market.
- Outbound trips approached 17 million pre-pandemic.
- The number surged to nearly 19 million in 2025, primarily due to travel to Japan and South Korea.
This reliance on transit passengers is a critical strategy for Taiwan’s airlines. EVA Air states that over 65% of its North America traffic comes from transfer passengers. The airline aims to connect major U.S. gateways with a network spanning over 200 destinations.
Airlines’ Strategic Approaches
China Airlines, with 50-60% of its North American routes comprising transfer passengers, is optimistic about growth driven by the expanding Southeast Asian middle class. The airline operates nearly 500 regional flights, enriching its long-haul traffic.
Starlux Airlines also sees 50-60% of its North America traffic from transfer passengers. The airline is strategically targeting cities like Phoenix and Ontario, California, to establish a competitive edge.
Passenger Volume Rebound
Taoyuan International Airport’s traffic to North America has rebounded to 123.2% of pre-pandemic levels in 2025, marking it as the most robust segment of long-haul travel. This indicates the growing significance of the North American market for Taiwan’s carriers.
Geopolitical Factors and Opportunities
Taiwan’s geographical position enhances its status as a natural transit hub between North America and Southeast Asia. Recent geopolitical shifts, such as increased business travel driven by Taiwanese companies expanding into the U.S., have further reinforced this position.
- Increased investment from Taiwanese firms like TSMC has spurred demand for business travel.
- Geopolitical tensions have redirected travel patterns, benefiting Taiwan’s transit traffic.
However, significant challenges remain. Competing regional hubs like Incheon and Hong Kong threaten Taiwan’s market share. To enhance competitiveness, airlines must continue expanding direct flights and strengthen market routes.
Future Outlook for Taiwan Airlines
While current profits enable these airlines to pay dividends, the future remains uncertain. Fluctuating fuel prices, geopolitical tensions, and economic variability could impact margins over time. Nonetheless, the trajectory of expansion into North America signifies Taiwan’s efforts to establish itself as a regional aviation hub, capitalizing on global shifts.
