China Eastern expects profit and traffic to decline in 2011
China Eastern Airlines' parent company, China Eastern Air Holding Co, stated it expects profit to decline in 2011 due to higher oil prices, according to deputy GM Li Jun (Bloomberg/Reuters, 04/07-Mar-2011). Mr Li stated cargo and passenger traffic will grow at a slower rate of about 12% in 2011, down from growth of more than 20% in 2010. Mr Li stated fuel accounts for 40% of China Eastern Airlines' operating costs.
China Eastern Airlines Holding Co: "This year is not going to be better than last year. The impact of volatile oil prices will be large. 2010 was the best year in China Eastern's history. China's economy recovered very quickly and we had the World Expo," Li Jun, deputy general manager. Source: Reuters, 04-Mar-2011.