Dragonair's passenger numbers registered a 10.2% increase in the first six months of 2006, up from 2,372,952 in the corresponding period last year to 2,614,508.

"Overall demand for travel remains buoyant, as the half-year figures attest," said Dragonair CEO Stanley Hui. "However, at the same time there has been a lot of pressure on yield, and also persistent pressure from very high oil price levels."

The June passenger figures were 10.1% higher than in the same month last year, and were a slight 0.6% lower month-on-month.

"June was a month of two distinct halves," explained Mr. Hui. "The first half was affected by school examinations in Hong Kong and Mainland, as well as the start of the World Cup. However, we saw a stronger second half, with individual and group traffic rising again, especially to secondary routes in the Mainland."