Business in the first week of cross-Taiwan Strait direct charter flights is good, but the long-term outlook remains difficult to predict, China Eastern Airlines (CEA) President Tsao Jiang-hsiung said Thursday.

As part of the government's policy, direct weekend cross-strait charter flights will begin today with the launch of 36 flights over the weekend to be operated by Taiwanese and Chinese carriers. CEA, a 20-year-old state-owned carrier, is among the six China-based carriers operating the historic flights.

At the signing of a Memorandum of Understanding (MOU) between the Chinese carrier and Taiwan's Cathay Financial Group on credit card services, Tsao said the tickets for CEA's Shanghai-Taipei flights in the first week are sold out, thanks to the large number of tourists wishing to travel across the strait.

However, Tsao said that with soaring costs incurred by skyrocketing international oil prices, airlines will need to maintain passenger load factor (PLF) of more than 50 per cent to make a profit.

The PLF of an airline is a measure of how much of an airline's passenger-carrying capacity is used.

"It is too early to judge if the business after the first month will remain at such a level," Tsao said.

CEA's July 4 Nanking-Taipei flight is scheduled to land at Taipei's Songshan Airport. The airline has arranged four charter flights during each weekend in July -- three Shanghai-Taipei flights and one Nanking-Taipei flight.

The flights plying the Shanghai-Taipei route should be able to maintain 50 per cent PLF, Tsao predicted, adding that many airlines are already focusing on this popular route.

Pointing out that long-term business cannot depend solely on tourists, Tsao said the revenues earned from tourists are often limited, as the fares for tour groups are often lower than those for independent travelers.

CEA is also the first Chinese carrier to be given the green light by the Chinese government to establish a preparatory office in Taiwan.

Tsao said that before the office can be set up, arrangements including opening a company bank account in Taiwan and renting office space need to be approved by the Chinese authorities.