April 27, 2004, Taipei, Taiwan- China Airlines announced its financial performance figures for the first quarter in 2004 today. Operating revenue for the first quarter was NT$21.6 billion, an increase of 12.6% compared to the same period last year. Pre-tax profit was NT$750 million, surpassing last year!|s NT$460 million. The financial result of the first quarter surpassed original forecast. The better than expected performance can be attributed to strong passenger and cargo demand and effective cost control.

Coincided with traditional passenger peak season, the passenger revenue for the firs quarter was NT$ 11.3 billion, an increase of 9.4% compared to the same period last year. Passenger load factor for the first quarter was 75.2%, an increase of 3.6 percentage points. The cargo revenue was NT$ 9 billion, a growth of 17%. Compared to the same period in last year, cargo traffic (FRPK) increased by 20.9%. The cargo load factor for first quarter was 75.5%, an increase of 1.3 percentage points.

China Airlines will introduce three A330-300 and two B747-400 passenger jets this year to provide better cabin facilities and service. New passenger services including Taipei-Hiroshima and Taipei-Seattle-Houston will be inaugurated. The flight frequency for Taipei-Hanoi service will also be increased to daily flight.

At the same time, China Airlines will introduce two new B747-400F freighters to replaced the leased same aircraft type and will wet lease a MD-11 freighter in second quarter. The new freighters will reduce operation cost and capture the strong cargo market demand.