China Eastern Airlines upgrades H1 forecast to profit instead of loss

Beijing (XFN-ASIA) - China Eastern Airlines Corp Ltd (SHA 600115;

HK 0670; NYSE CEA), one of the country's three major airlines, said it now expects

to return to profitability in the first half due to an improvement in operating

profit and a stronger yuan.

At the time of its first quarter 2007 results announcement, the airline was still projecting a first half loss. In the first quarter it posted a net loss of 550 mln yuan.

In the first half of 2006, China Eastern reported a net loss of 1.46 bln yuan, or a loss per share of 0.30 yuan, under Chinese accounting standards.

The company is scheduled to release its first half results on Aug 30.