Dragonair reports Record Numbers for 2004

2004 was a record year for Dragonair as passenger numbers and cargo volumes, recorded double-digit year-on-year increases.

“The performance overall last year was very strong, although the operating environment was quite challenging,” said Dragonair CEO Stanley Hui.

The airline flew more than 4.5 million passengers during 2004, a 49.2% jump over 2003, and over one million more than its previous annual record, set in 2002.

“Because of the low base figure in 2003 resulting from the SARS outbreak, it was clear that, barring unforeseen circumstances, our figures would be higher this year,” said Mr. Hui. “Clearly, after the setback in 2003, we are now back on track.”

During the year, Dragonair increased frequencies to Shanghai to 87 a week, and launched services to Tokyo in April. The airline also took delivery of two A320s and one A330, which helped underpin the growth.

Passenger figures for the last month of the year also posted a rise year-on-year, of 14.5%. Month-on-month there was a slight drop, of 1.7%.

“Continued growth in demand from the main manufacturing regions in China propelled cargo volumes to a 26.8% increase for the year,” Mr. Hui said. “The outlook for 2005 remains bright.”

For the year, Dragonair carried 342,413 tonnes of cargo, compared with a total of 269,981 in 2003. December figures were also up, on a year-on-year and month-on-month basis by 34.3% and 2.1%, respectively.

“Last year our cargo division set a string of records, with December posting our second-highest uplift level,” explained Mr. Hui. “The UK and Japan markets were particularly robust in the month.”

Dragonair expanded its cargo network in 2004, adding the key cargo hubs of Frankfurt and London Stansted, and the Yangtze River Delta city of Nanjing. It took delivery of one Boeing B747-200 and one wet-leased Airbus A300B.

“The high price of oil throughout the year made it a challenging period for us, and it appears that higher prices will be with us for some time to come,” he said. “At the same time, passenger yields continued to be an issue.”

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