During the shareholders meeting, Mr. Phillip Wei, President of China Airlines, pointed out that due to the war in Iraq and SARS in the first half of 2003, the economic recession had an adverse effect on China Airlines' operations. However, growth in the cargo sector, and efficient cost controls, helped the carrier through these crises. When the threat of SARS ebbed in second half of 2003, China Airlines' operations returned to normal, which resulted in after-tax profits of NT$ 1.78 billion, or NT$ 0.64 per share.

In 2003, China Airlines inaugurated new passenger services to Hanoi and Brisbane, and resumed its Taipei-Honolulu and Taipei-Seoul direct services. Also in 2003, CAL set up an all-in-one function Customer Service Call Center, and its outstanding inflight and ground service earned it the "2003 Service Excellence Award" in Taiwan.

China Airlines is introducing seven new aircraft in 2004, including three A330-300s to replace older A300-600Rs. The A300-300s have 20% more seats than the A300-600Rs, which will increase CAL's capacity on its Asia routes. Two self-owned B747-400Fs delivered in May and June will replace two wet-leased aircraft, resulting in tremendous cost savings. In addition, CAL will take delivery of two B747-400 passenger jets in November and December. China Airlines inaugurated a Hiroshima passenger service on June 2. It will soon inaugurate new passenger services to Seattle, Houston and on June 22, and regular charter cargo service to Milan later this month.

The airline market is highly competitive, but also filled with potential due to the world economic recovery. In the future, China Airlines will continue its fleet rejuvenation and simplification program, expand its route network into new markets, improve productivity, reduce costs, and enhance overall management of its flight safety systems. It is expected that CAL will be able to fulfill its forecast of NT$ 89.07 billion in revenue and NT$ 1 in earnings per share in 2004.