BEIJING – Flag carrier Air China says it expects to post a ”significant loss” for 2008 due to shrinking passenger numbers and misjudged fuel hedging contracts.
The announcement to the Shanghai Stock Exchange, reported by AFP, marked a disappointing result on what was supposed to be a banner year for Air China after it was named the sole airline sponsor of the Beijing Olympics and joined the Star Alliance group of carriers.
Air China attributed the falling demand to the financial crisis, but added the Sichuan earthquake in May and restrictions on air travel during the Olympics had also played a role.
Losses on as-yet unrealised fuel hedging contracts would also impact strongly on the 2008 result, the airline said.
