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| Friday, October 10, 2008 20:58:08 |
China Eastern Airlines sees widened H1 losses
Driven by rising fuel prices and maintenance costs, China Eastern Airlines Corp. said its first-half net loss nearly tripled over a year earlier, signaling its acquisitions of two regional airlines have not yet bought a positive effects, Forbes reported.
The airline’s H1 losses rise to 1.72 billion yuan (215.8 million US dollars).
'China Eastern's overall operating costs were far higher than expectations, rising by 20.4 pct. No airline in the world could bear this,' said Forbes, quoting Guotai Junan analyst Alan Lam as saying.
China Eastern's rising air maintenance and staff costs also rose as the airline overhauled part of its fleet, made aircraft purchases and absorbed staff from the carriers it purchased, said Lam.
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