Strong July heralds robust return of Domestic Traffic for China Southern Airlines

China Southern Airlines has reported that its domestic Chinese traffic is rapidly returning to its pre-SARS numbers.

For the week ending July 12, 2003, China Southern Airlines was at 87% of domestic flights, 81% of passengers carried and an overall load factor of 65.2% from the same time period in 2002.

"The recovery of the overall domestic market in China has blown through all of  our expectations. In late June we were looking at a weak July and it has been anything but flat," said Mr. Li Kun, Vice President, China Southern Airlines.

Mr. Li attributed China Southern Airlines' post-SARS domestic turnaround to its Sunshine Marketing Plan, the robust Chinese economy and the overall strength of the business climate in Asia.

He added that as the SARS-delayed High School summer break begins to roll across the nation, "we can track more and more families that are ready and eager to travel again and we are clearly pleased to be part of their air transportation plans."

China Southern Airlines is offering a 40% discount off full fares for all high school students and a 25% discount off full fares for teachers and their spouses throughout its domestic China network.

Additionally, China Southern Airlines is offering a 25% discount off the full fare for all doctors, nurses, medical staff and their spouses through the end of 2003. As a bonus physicians, nurses and medical staff who join China Southern Airlines' Sky Pearl Club frequent flyer program will receive a bonus of 2,003 miles upon enrollment.

Incoming college freshmen will receive special travel discounts for themselves and their immediate family - 40% discounts off full fares throughout China - from August 10 through September 20. College freshmen that join the Sky Pearl Club will also receive a 2,033 mileage bonus and each family member who is a current member of the Sky Pearl Club will receive a 2,003 mileage bonus.