評航空業之財務表現 / Airline business is an industry of high profile, however, its profit performance has been well below average and highly instable compared with firms in other industries. In recently years, some unforeseeable events such as terrorist attacks in 2001, the outbreak of SARS of 2003 and doubled oil price since 2005, have made this business more difficult to survive in. Taiwanese airline companies, operating in the most fast-growing Asia Pacific market, are sharing the same risks and facing the same challenges as well. The two international operators in this small island are still able to survive, however, the financial results of both have been seriously deteriorated by record high oil price and other non-cyclical event for recent years. On the other hand, cross strait direct link is expected to help Taiwan airline industry gain altitude in the future. The objective of this study is to examine the financial performance for two major Taiwan airlines, China Airlines and EVA Airways during this period through financial ratio analysis instruments and to find out the main factors behind the results.