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The China Eastern Airlines in Shanghai reported a loss of 955 million yuan (US$119 million) in the first quarter of this year as a result of soaring oil prices.

 

According to a recent issue of the 21st Century Business Herald, the airline predicted that its net profits would continue to fall in the second quarter as a result of surging global oil prices and stiff competition in the domestic market.

 

The China Southern Airlines also said its net losses amounted to 665 million yuan in the first three months, predicting that this situation would linger on in the April-June period.

 

Sources with the China Eastern Airlines said the airline would take a series of measures to offset the effects caused by high oil prices, including saving energy, negotiating prices with oil suppliers and imposing fuel surcharges.

 

(Xinhua News Agency May 9, 2006)