China Eastern posts record loss
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
China Eastern Airlines, the nation’s third-largest airline,has posted a loss of CNY15.3 (US$2.2 billion) for last year, the biggest losssince its 1997 initial share sale, according to a Bloomberg report. The carriersuffered from making wrong-way bets on fuel prices and a slump in passengerdemand.
“The loss was much larger than market expectations,” KelvinLau, an analyst at Daiwa Institute of Research Ltd. in Hong Kong, was reported saying. “As the company booked a huge loss in2008, it may post a better picture this year, but is unlikely to return toprofit yet.”
The Shanghai-based airline’s loss was more than double theCNY6.7 billion median of eight analysts’ estimates compiled by Bloomberg. Thecarrier booked a paper loss of CNY6.26 billion on oil hedging last year afterfuel prices tumbled 70% in less than six months. The full-year loss was the airline’sthird in four years.
China Eastern expects to boost passenger numbers 15% to42.8 million in 2009, the airline was reported saying in a statement. Thecarrier’s passenger numbers rose 12% in the first quarter to 10.1 million,according to the report.
Comments are closed.