March 23, 2004, Taipei, Taiwan- China Airlines held a board meeting to review and approve its financial performance figures for 2003 today. Operating revenue for 2003 was NT$75.859 billion (US$2.2 billion) and after tax profit was NT$ 1.779 billion (US$51.6 million). Passenger revenue was NT$ 36.565 billion and cargo revenue was NT$ 34.891 billion. Earnings per share was NT$0.64. The board also passed a resolution to distribute an NT$ 0.6 dividend (NT$0.1 in cash and NT$0.5 in shares) to shareholders. The annual shareholder!|s assembly will be held on June 11.

China Airlines passenger operations were seriously affected by SARS in 2003. However, due to effective cost control, China Airlines managed to achieved an NT$ 1.779 billion profit for the year, and was the Taiwan airline industry!|s top financial performance last year. In the second half of the year, China Airlines introduced aggressive promotion plans which helped contribute to a profit of NT$ 2.7 billion, not only recovered its first-half loss but also achieved an annual profit surpassing the original forecast. CAL!|s cargo operation was not affected by SARS and continued to prosper, which was particularly a major contributor to 2003!|s earning results. Cargo business accounted for 46% of the carrier!|s operating revenue in 2003.

In 2004, China Airlines will continue its fleet simplification program and cost control policies. China Airlines announced its 2004 financial forecast that annual operating revenue will reach NT$ 89 billion (US$2.6 billion) and net profit NT$3.1 billion (US$89.8 million). In the first two months, accumulated operating revenue reached NT$ 14.38 billion, a 12.6% increase compared with the same period last year. Accumulated cargo revenue in January and February was NT$ 5.63 billion, an increase of 17.5% compared with the same period last year. In 2004, China Airlines will introduce seven new aircraft, including three A300-300 passenger jets, two B747-400 passenger jets and two B747-400F freighters. The new aircraft will boost CAL!|s operating efficiency, and with the continuing recovery in the world economy, it is expected that China Airlines will successfully achieve its financial forecasts.