HONG KONG – Recently, China Eastern Airlines reported a loss of 950 million yuan (US$115 million) for 2003 compared with profits in 2002. China Eastern’s stock fell 0.195 yuan per share.

The outbreak and rapid spread of SARS in Asia in the first half of 2003 caused a dramatic decrease in passengers, which for a while created a difficult situation for the operation of Chinese airlines, said the company in a statement.

China Eastern Airlines said the company will take new measures to reduce the losses, such as delaying the purchasing of new aircrafts, canceling and combining flights, and also reducing its payroll.

Despite the loses, Ye Yigan, chairman of China Eastern Airlines, announced plans in the company's interim results to put nine new aircrafts in service, including two A340-600s, five A320s and two A321s.

China’s Civil Aviation Administration and the government of Shanghai are working closely to make Shanghai an Asian airhub. Eastern Airlines is working on steadily increasing the market shares in Shanghai, Ye said.