China Eastern Airlines Corporation Limited has released its 2008 annual report which shows a net loss of nearly CNY14 billion.
The operating income of 2008 was CNY41.842 billion, representing a decrease of 3.9% over 2007, with net loss CNY13.928 billion. The airline's total liabilities reached CNY84.249 billion, of which current liabilities were CNY54.076 billion, an increase of CNY18.200 billion over the previous year; non-current liabilities were CNY30.120 billion, an increase of CNY2,700 million.
The international air transport market has shrunken due to the global financial crisis, inflicting heavy losses on the company's international business. Domestic market also suffered in the fierce competition caused by the impact of serious natural disasters, emergencies and the financial crisis.
Earlier China Eastern Airlines has signed a development finance agreement with China Development Bank, under which CDB will offer CNY30 billion to China Eastern as financing.
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