BUILDING on reports that 2006 was a record-setting year for leading airlines based in the Asia Pacific region, Dragonair carried 395,384 tonnes of air freight, an increase of 2.6 per cent compared with the previous year.

Passenger numbers grew by 8.3 per cent year on year to 5,568,508.

"Despite the high oil price and increased competition, 2006 was Dragonair's best year ever in terms of passenger numbers and cargo shipments," said CEO Kenny Tang. "More than 425,000 customers flew with us than in the previous year, mainly due to increased economic activity between Hong Kong and the mainland.

"As well as healthy growth in the Hong Kong and mainland markets, we also saw increasing demand out of the US and Australia towards the end of the year, helped by the global sales and marketing network of our partner airline Cathay Pacific. That should continue going forward. Elsewhere, our cargo operation performed satisfactorily, and again was underpinned by the strength of the mainland market."

"We are confident about the market in the year ahead, although the operating environment will remain tough. We expect healthy growth to continue in 2007 as more synergies come through from being part of one of Asia's strongest airline groups. Among the highlights for us this year will be our joining of the Oneworld Alliance," added Mr Tang.

Dragonair is a Hong Kong-based airline and part of the Cathay Pacific Group.