(Hong Kong, August 18, 2008) – China Southern Airlines Company Limited today announced the unaudited consolidated results of the Company and its subsidiaries for the six months ended June 30, 2008, prepared in accordance with International Accounting Standards.

During the Period, the Group’s total operating revenue amounted to RMB26,781 million, an increase of 9.1% over the same period last year; profit before taxation amounted to RMB944 million, an increase of 110.7% over the same period last year; profit attributable to equity shareholders of the Company amounted to RMB847 million, an increase of 404% over the same period last year; and basic earnings per share was RMB0.19, an increase of RMB 0.15 over the same period last year. The board of directors of the Company did not recommend any interim dividend in 2008.

During the Period, as affected by various unfavorable factors including the US sub-prime mortgage crisis, ballooning inflation, stringent monetary policies and natural disasters, the growth in the PRC aviation market was much lower than what was expected at the beginning of the year. The Group recorded a total traffic turnover of 4,544 million tonne kilometres, an increase of 6.9% year-on-year; and it carried 27.9563 million passengers and handled 427,700 tonnes of cargo and mail, representing increases of 5.7 and 6.0%, respectively as compared to the same period last year. The average utilization rate of the Group’s aircraft was 8.99 hours per day, a decrease of 0.4 hour year-on-year. The average passenger load factor was 73.1%, an increase of 1.2 percentage-point year-on-year; and the average load factor was 64.6%, an increase of 1.8 percentage-point year-on-year.

During the Period, the Group has achieved a record of 5 million safe flying hours and was honored with the “Five-Star Flight Safety Award”, currently the most prestigious award in safe flight operation in China, by the Civil Aviation Administration of China. The Group became the first airline company obtaining such award in the PRC. The International Air Transport Association announced that the Group was ranked No. 1 in Asia and No. 4 in the world in terms of passenger carried in 2007. Among the “Top 100 Listed Companies in China” named by Fortune China, the Group was ranked 32nd and was ranked the first in the air transportation industry, as well as being the company with the highest net profit growth in 2007.

Looking ahead into the second half of 2008, Mr. Liu Shao Yong, Chairman of the Company, said, “As affected by the international and domestic macro-economic environment, airlines are generally saddled with three major burdens, including insufficient market demand, fierce competition and high oil prices. As such, the Group expects to undergo a long period of hardship. The Group, therefore will rationally deploy its transportation capacity, optimize its routes structure, strengthen marketing and sales efforts, and raise revenues from first and business class cabins, as well as reducing production costs and the scale of infrastructure investment; thereby enhancing the Group’s operating standards and creating better returns for our shareholders.”

August 02 2008

Royal Jordanian Board of Directors, chaired by Nasser Lozi, approved in its July 31, 2008, session the financial results of the company for the first half of 2008. The results show that RJ incurred net losses of around JD3.1 million, against JD1.9 million during the same period of last year. The results were much better than the losses estimated in the budget for the first half of 2008 despite the soaring jet fuel prices that the company had to pay for this year.

Lozi praised the efforts extended by the company’s management this year to increase the number of passengers and the company revenues, and to reduce the effect of the unprecedentedly high fuel prices. The company, he said, managed this big challenge with professionalism, following a clear strategy that focuses on attracting new passengers, and following fuel-hedging policies and procedures to control costs.

President/CEO Samer Majali said that Royal Jordanian’s operational revenues grew up by 33% in the first half of 2008, compared to the same period in 2007. The airline registered JD315 million this year against JD236 million in the same period last year. Thus the revenues exceeded the estimates set for this time of the year.

This record increase in revenues resulted from an increased number of passengers, by 21%, from 1 million passengers in the first six months of 2007 to 1,225,000 passengers this year. The company’s commendable efforts to market sales, improve product and offer distinguished onboard services led to these good results, said Majali.

He added that the seat factor rose by 5%, to reach 71%. The big growth in the number passengers came despite the fact that demand on travel in the first six months is usually less than that in the second half of the year, particularly during the summer season. The airline expects to see unprecedentedly big numbers of passengers this summer.

Majali also said that the uplifted cargo grew by 21% in comparison to last year’s first half. Therefore, freight revenues rose from JD17 million in the first half of 2007 to JD21 million in 2008.

The operational expenses of the company increased from JD230 million in the first six months of 2007 to JD316 million in the first six months of this year, marking an increase of 37%, due to the high rise in jet fuel costs, which amounted to JD131 million, against JD68 million in the corresponding period of 2007, marking a 91% increase. The flying hours rose by 18% only.

The RJ president said that jet fuel now makes up 42% of the operational costs, against 30% during the same period last year. This percentage underscores the enormous challenges the company faces because of the high fuel prices. The other operational costs did not see a remarkable increase, particularly that the available seat kilometers (ASKs) are proportionate to the volume of operations.

Majali stressed that since the beginning of this year, the company has followed the policy of fuel purchase hedging, agreeing to purchase 30% of the expected amount of consumed fuel in 2008 and 2009. This policy is bound to boost the financial status of the company and improve the financial results.

Moreover, the airline joined efforts with the International Air Transport Association (IATA) to take some technical steps bound to reduce fuel consumption, reviewing the weight carried on board and flying shorter routes when possible.

In addition, the airline assets went up to JD394 million last June, from JD326 million at the end of 2007, marking a 21% increase; the company became the owner of two Embraer 175 aircraft in May and June this year, out of four aircraft it contracted to introduce earlier on capital lease basis under easy conditions. The first batch of aircraft was introduced in 2007.

The company registered net profits of about JD20.3 million in 2007 despite of the loss it incurred in the first half of the same year, which amounted to JD1.9 million, in light of the big rise in the number of passengers, the growth in return on sales, and the improvement of services level.

The RJ president mentioned that there is a great demand on travel to all the airline’s destinations in the summer months. He also underlined the company’s keenness to offer passengers best services in the air and on the ground, and to facilitate their travel.

He called upon the passengers to visit the website of the company at www.rj.com to benefit from the facilities offered them, such as online booking, offers and ticket fares, flight schedules and other information related to traveling.

Royal Jordanian serves a route network of 55 destinations directly from Amman and more than 700 destinations through its membership in the oneworld airline alliance, which brings together ten giant air carriers: American Airlines, British Airways, Cathay Pacific, Finnair, Japan Airlines, LAN, Hungarian Malev, Qantas, Iberia and Royal Jordanian.

The airline operates a fleet of 27 aircraft of different modern types.

Sydney, 21 August 2008

Qantas today announced a record profit before tax of $1,408 million for the full year ended 30 June 2008, a 46 per cent increase on the prior year results.

The Board declared a final fully franked ordinary dividend of 17 cents per share, taking the full year ordinary dividend to 35 cents per share, which represents a dividend payout of approximately 70 per cent.

The Chairman of Qantas, Mr Leigh Clifford, said following an excellent performance across all segments for the first three quarters, the business was starting to see the effects of a slowing economy and rising fuel prices.

“We have benefited from a strong revenue environment, which was supported by major investments in customer service and product. The result was further underpinned by sustained efforts to improve efficiency,” he said.

“Our results were also due to the hard work and commitment of our employees and I thank them for the contribution they made to the company’s success.

“In recognition of this contribution, the Board has approved the awarding of $1,000 worth of shares and a cash bonus of $1,000 to all eligible staff.”

Mr Clifford acknowledged the contribution Geoff Dixon had made to the Group since becoming Chief Executive Officer in 2000.

“Geoff and his senior executive team have done an outstanding job making Qantas stronger during events which have challenged the industry and changed its fundamentals,” he said.

“He has also been working closely with Chief Executive Officer Designate, Alan Joyce in the lead up to the transition at the end of November.”

The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the key drivers of the results were:

. strong domestic and international demand, which led to a 1.2 per cent yield improvement and a 0.8 per cent improvement in seat factor to 80.7 per cent for the Group;

. the continued success of the Group’s two brand strategy, with Qantas Airlines delivering a 21.6 per cent increase in profitability, and continued growth by Jetstar in both international and domestic markets, leading to a profit increase of $37 million, or 44.7 per cent, compared to the previous year;

. improved margin management, with operating expenditure increasing only 5.6 per cent, compared to capacity growth of 4.0 per cent and CPI increases of 3.4 per cent; and

. a further $747 million of efficiencies under the Sustainable Future Program, which resulted in a unit cost reduction of 2.3 per cent.

Non-operating items included in this year’s result were:

. liquidated damages of $291 million ($98 million prior year) due to delays in the delivery of new aircraft;

. accelerated depreciation and asset write downs of $165 million, which included the retirement of a number of B747-300 and Dash 8-100 aircraft ($45 million prior year); and

. provision for settlements relating to freight cartel of $64 million ($47 million prior year).
The liquidated damages partially offset costs being incurred by Qantas in preparation for new aircraft deliveries, including interest foregone on aircraft progress delivery payments and buyer furnished equipment, crew training, related asset purchases (such as flight simulators) and new aircraft program costs.

The accelerated depreciation and asset write downs of $165 million were primarily the result of the capacity reductions recently announced, which will result in the retirement of over 20 aircraft.

Mr Dixon said a very strong revenue performance had driven the result, underpinned by continued major investment in product and service over the past five years, including:

. an average of $2 billion each year on new aircraft, with a further A$35 billion of aircraft currently on order;

. around $120 million a year in new product, including lounges and aircraft interiors;

. an average of $275 million each year on staff training; and

. more than $300 million on engineering and maintenance facilities, with a further $120 million committed to upgrade engineering systems.

“Our significant investment in product and service has ensured Qantas’ customer satisfaction levels remain high,” he said.

“This has been reconfirmed by our performance in the 2008 Skytrax World Airline Awards, where Qantas was ranked the world’s number three airline, out of a field of more than 160 carriers. Qantas is one of only two carriers to have been listed in the world’s top five airlines for six consecutive years.

“Jetstar, having been named airline of the year in the low cost category in 2007, was placed third this year.

“Qantas’ new $10 million Customer Service Centre of Excellence will open by the end of the year, offering enhanced customer service training for 18,000 frontline staff and management.”

Mr Dixon said the Sustainable Future Program, now in its fifth year, had achieved cumulative $3 billion in efficiency improvements since commencement in 2002/03, with a further $747 million in savings achieved during the year.

“The program is critical to our strategy and to our ability to compete successfully in the international market. To this end we are targeting to achieve further cumulative savings of $1.5 billion by June 2010.”

Mr Dixon said the full year results for the first time included separate reporting for the Qantas Frequent Flyer (QFF) and Qantas Freight businesses as part of the Group’s business segmentation strategy.

“This is in line with our announcement last year that we would position our portfolio businesses for greater growth and diversity outside their traditional aviation areas, and provide alternative ownership options.

“Regarding the loyalty business, Qantas is well advanced in its preparations for a partial Australian IPO subject to market conditions. The Board will consider this issue further in September.”*

Mr Dixon said Qantas had confronted a number of challenges in recent months, including the QF30 decompression incident.

“This serious incident, which remains the subject of official investigations, was superbly handled by the aircraft’s flight and cabin crews,” he said.

“This event, coupled with the impact of the recent industrial dispute with the Australian Licensed Aircraft Engineers Association, caused significant disruption for our passengers and impacted Qantas’ financial and operating performance in recent months.

“We understand the level of scrutiny we are being subjected to at present. We will work through these issues and implement any changes that may be required, but our commitment to safety should never be questioned. Qantas has an unrivalled safety record, and safety will always remain our number one priority.”

Mr Dixon said Qantas had one of the most enviable orders of new and fuel efficient aircraft in the world which would assist in achieving fuel savings in the future of up to 20 per cent.

“While delivery of these has unfortunately been delayed due to issues with aircraft manufacturers, we are ready to take delivery of our first A380 in September and the late 2009 delivery timeframe for our first B787 Dreamliner is on track.”

In relation to the current operating environment, Mr Dixon said that Qantas, and the airline industry as a whole, was facing major challenges.

“The rapid rise in fuel costs since December last year is unprecedented and the impact has been felt across the aviation industry and the world economy.

“At current prices our fuel expense will be over $1.6 billion higher in 2008/09. We have hedged 81 per cent of our crude oil price exposure at a worst case all-in cost of US$118 a barrel. This cover is all in options, which will allow Qantas to benefit if prices fall,” he said.

“A large number of airlines have already announced significant financial losses, capacity reductions and job losses in the face of record high fuel prices and an economic slowdown.

“The strategies we have worked hard to implement over the past few years, including the successful two brand strategy, the segmentation of our business and the continued focus on costs through the Sustainable Future Program, have put us in a strong position to deal with the current challenges.”

Mr Dixon said Qantas had built a great deal of flexibility into its various businesses to enable it to effectively handle these challenges.

“We have reacted quickly and have already announced a number of steps to reduce costs, adjust capacity, and increase fares,” he said.

Outlook
Although fuel prices have eased over the past month, they have not declined to levels that will sustain the current level of profitability, and fuel and economic conditions continue to be uncertain. However, assuming no further deterioration in economic conditions, Qantas expects its 2008/09 profit before tax to be broadly in line with analyst consensus forecasts.

*This announcement has been prepared for publication in Australia. This announcement does not constitute an offer of securities for sale in the United States or any other jurisdiction. No securities described in this announcement have been or will be registered under the US Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.