China Eastern Swings To H1 Profit - Report

The state-run parent of China Eastern Airlines swung to a profit in the first half of this year after cutting costs while market conditions improved, the official Shanghai Securities News reported on Monday, citing an internal company meeting.

China Eastern Air Holding cut controllable costs by 12 percent, or CNY13 million yuan (USD$16.5 million), after adopting measures to stem losses, the newspaper said.

The listed unit posted a CNY212.5 million net loss for the first half of 2008 and a CNY15.3 billion loss for the full year, based on international accounting standards.

But the company's board secretary said in April that the airline, one of the country's top three carriers, could return to the black this year as the domestic air travel market picked up.

The carrier on July 13 agreed to acquire smaller rival Shanghai Airlines for about CNY9 billion, giving the combined carrier more than half of Shanghai's air passenger market.

Consolidation of the two firms is proceeding smoothly, the newspaper said.