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 … [Read more...] about More bad news from China carriers
China Eastern Airlines
Air China expects first loss in 8 years
Air China is expecting to post its first annual loss in eight years due to slumping demand and bad bets on fuel prices, state media reported. The company said in a statement filed with the Hong Kong stock exchange on Friday that it lost US$994.5 million on fuel hedging in 2008. Chinese carriers are banned from hedging purchases on fuel used for domestic flights, which in the past made Air China less vulnerable than its competitors to rising fuel prices. But jet-fuel prices have fallen more than … [Read more...] about Air China expects first loss in 8 years
Cathay loses US$980 million on hedging gamble
Cathay Pacific Airways has joined many of its counterparts in reporting huge fuel-hedging losses, plunging the previously profitable Asian carrier into an expected record loss for last year, the South China Morning Post reported. The loss on Cathay's fuel-hedging contracts as of the end of last month amounted to around US$980.1 million, deepening from the $361.1 million loss estimated to have been incurred at the end of October, according to the third profit warning filed by the airline in … [Read more...] about Cathay loses US$980 million on hedging gamble
China : China East books loss for Jan-Sept period
China Eastern Airlines Corp Ltd said it expects to book a net loss for the first nine months of 2008 under Chinese accounting standards. The airline said in a statement to the Shanghai Stock Exchange that its operations had deteriorated significantly in the third quarter due to a slowing aviation market and a dramatic fall in transport demand from a year earlier. The upward adjustment in the price of jet fuel also led to a significant increase in operating costs, China Eastern said. In late … [Read more...] about China : China East books loss for Jan-Sept period
Europe & CIS : China Eastern links Copenhagen to Shanghai
China Eastern Airlines has begun operating a new service from Copenhagen to Shanghai via Frankfurt. Passengers will once again be able to fly from Copenhagen Airport to Shanghai on China Eastern Airlines’ service to Frankfurt, which will be extended to Copenhagen twice a week:Thursdays and Saturdays. … [Read more...] about Europe & CIS : China Eastern links Copenhagen to Shanghai
Europe & CIS : China Eastern links Copenhagen to Shanghai
China Eastern Airlines has begun operating a new service from Copenhagen to Shanghai via Frankfurt. Passengers will once again be able to fly from Copenhagen Airport to Shanghai on China Eastern Airlines’ service to Frankfurt, which will be extended to Copenhagen twice a week:Thursdays and Saturdays. … [Read more...] about Europe & CIS : China Eastern links Copenhagen to Shanghai
