Air China and Shanghai Airlines joined China Southern Airlines and China Eastern Airlines in announcing that they expect to report losses for 2008. Both carriers cited declining market demand along with the impact of May’s Sichuan earthquakes, stricter security measures surrounding the Beijing Olympics, the global financial crisis and the mid-year spike in fuel prices, followed by fuel hedge losses. Air China noted that it suffered a US$993.3 million loss resulting from a writedown in the value of its fuel hedges on 31 December. It reported cash losses of US$5.9 million and US$52.8 million on its fuel hedge contracts in November and December respectively. Shanghai Airlines also it posted a US$1.2 million cash loss on its fuel hedge contract as of 31 December, while the full-year writedown totaled US$24.9 million.