Double digit rise in Passenger numbers for Dragonair in June but Fuel Prices a serious concern

Dragonair reported a double-digit increase in the number of passengers flown in June 2004 compared with May 2004 as well as a healthy rise in the amount of cargo carried. However, the airline did admit that high oil prices remained a concern.

Dragonair flew 386,843 passengers in the month, 17.7% higher than in May, and nearly 300% up on June 2003 due to the SARS outbreak then.

"The number of people travelling with us in June was the highest monthly figure this year," said Chief Executive Officer Stanley Hui. "Group travel was particularly strong due to the Dragon Boat holiday last month and various promotions to boost traffic.

"However, overall, yields remain low, which is a concern. As is the high price of oil, which is having a significant impact on our bottom line. The temporary fuel surcharge introduced last month is only partially offsetting the increased costs we are currently facing."

Meanwhile, cargo volumes rose 7.6% month-on-month, and 23.6% year-on-year.

"Our cargo operation continues to thrive on the growth in demand from the Mainland," said Mr. Hui. "In June we increased frequencies to Shanghai and Osaka following the entry into service of an A300B4 freighter, and launched an all-cargo service to Nanjing to capitalise on the development in the Yangtze River Delta region.

"Given that June is traditionally a low period for freight, the performance has been good, although as with our passenger operations the high price of jet fuel is hurting the bottom line."