China Eastern Airlines Ltd, one of the country's biggest three airlines, sank deeper into the red in the first half of this year, the company reported on Monday, hit by surging fuel costs.
The carrier, based in China's financial hub of Shanghai, suffered a net loss of 1.46 billion yuan ($183 million) in the first six months of the year, up from a loss of 410.45 million yuan in the same period last year under Chinese accounting standards.
The performance was worse than that of China Southern Airlines Co Ltd, the country's biggest carrier by fleet size, which posted a net loss of 835 million yuan for the period. The results underscored the vulnerability of the Chinese airline industry to high fuel prices despite surging traffic numbers. "Airlines' performances are tied closely to fuel prices but I am still unnerved by such deep losses," said Ma Ying, senior analyst with Haitong Securities.
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