Dragonair - Passenger Numbers, Cargo Set Records in 2006

Dragonair flew a record number of passengers and carried a record amount of freight in 2006.

A total of 5,568,508 travellers flew with the airline last year, 8.3% higher than the 5,139,956 in 2005, and it carried 395,384 tonnes of cargo, a 2.6% year-on-year increase compared with the previous year.

"Despite the high oil price and increased competition, 2006 was Dragonair's best year ever in terms of passenger numbers and cargo shipments," said CEO Kenny Tang. "More than 425,000 customers flew with us than in the previous year, mainly due to increased economic activity between Hong Kong and the China Mainland.

"As well as healthy growth in the Hong Kong and Mainland markets, we also saw increasing demand out of the US and Australia towards the end of the year, helped by the global sales and marketing network of our partner airline, Cathay Pacific. That should continue going forward.

"Elsewhere, our cargo operation performed satisfactorily, and again was underpinned by the strength of the Mainland market."

Meanwhile, the number of passengers in December saw a month-on-month decrease of 5.6%, partly due to Bangkok being dropped from the network in late September last year. Although there was also pressure on group sales during the month as a result of competition, the resumption of flights to Phuket is expected to see passenger numbers pick up in future.

Looking ahead, Mr. Tang said: "We are confident about the market in the year ahead, although the operating environment will remain tough. We expect healthy growth to continue in 2007 as more synergies come through from being part of one of Asia's strongest airline groups. Among the highlights for us this year will be our joining of the oneworld alliance."

Dragonair is a Hong Kong-based airline operating a fleet of 28 passenger aircraft to 29 regional destinations, including 21 cities in the China Mainland, and seven freighters to nine ports worldwide. Dragonair is part of the Cathay Pacific Group, providing seamless connectivity for passengers to over 100 cities around the globe.

Dragonair web site address: www.dragonair.com