China Eastern Airlines, one of China's three state-owned
carriers, said it lost 2.78 billion yuan (US$360 million) in 2006,
compared with a net income of 60 million yuan in 2005.
Last year's loss was equivalent to 0.57 yuan per share. The year
previous it had earnings of 0.01 yuan per share, the company said
in its annual report on Friday.
Using international accounting standards the loss was actually
3.31 billion yuan, noted the report.
The airline attributes the loss to rising fuel prices and
fiercer competition caused by the increasing fleet size of other
airlines and new licenses that were granted to more private
airlines.
China Eastern carried more than 35 million passengers in 2006,
compared with 24 million in 2005. Seventy-one percent of its seats
were filled last year compared to 69 percent the previous year.
China Eastern is the only one of China's three state-owned air
carriers that reported loss in 2006. Air China posted 3.2 billion
yuan in net profit, while China Southern Airlines earned 118
million yuan.