Shanghai Airlines reports RMB 91-mln net loss for H1

Aug. 12, 2009 (China Knowledge) - Shanghai Airlines Co Ltd<600591>, the city's second-largest carrier, reported a net loss of RMB 91.29 million for the first half of this, and attributed it to a sharp decline in cargo volume, sources reported.

Cargo income at Shanghai Airlines Cargo International Co Ltd decreased significantly in the first six months of this year due to the financial crisis and the outbreak of H1N1, the carrier last week said in a preliminary earnings report to the Shanghai Stock Exchange.

The airline reported net losses of RMB 1.25 billion for 2008 and RMB 435 million for 2007.

Shanghai Airlines currently is in merger talks with China Eastern Airlines Ltd<600115><0670><CEA>, the country's third-largest carrier. The merger is expected to help them secure more than 50% share in Shanghai's air passenger market.

China Eastern posted a net profit of RMB 984.65 million for the first half of this year thanks to RMB 2.79-billion fuel hedging gains while it reported a RMB 212.5-million net loss for the first half of last year.