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Rising crude prices brings some relief to China Eastern

(chinadaily.com.cn)
Updated: 2009-06-05 14:34

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Though Chinese airliners, particularly China Eastern, have managed to trim their hedging losses thanks to recent rise in oil prices, analysts aver that the worst is still far from over for the beleaguered carrier.

With oil prices crossing the $60 mark, China Eastern is finding welcomed relief from the running losses in fuel hedging contracts. But analysts say there remains uncertainty over the hedging losses as its contracts are mostly due in 2010.

They add that much can change on the oil front between now and then. The actual magnitude of the loss will depend on the price change in coming months with the possibility of prices slumping again if the recession worsens...

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