China Eastern reports major losses

China Eastern Airlines reported losses of US$114.8 million in 2003, a sharp turnaround from its US$10.4 million net profit in 2002. The Shanghai-based carrier said the losses were primarily due to the damage inflicted upon China's tourism industry during the SARS outbreak in the first half of the year and the war in Iraq. China Eastern added that cargo and mail volume rose 27% last year, contributing to a 30% increase in revenues for that business.