China’s Shanghai Airlines fell into the red in 2007 despite solid growth in revenue as it was hurt by increased fuel prices and more intense competition for labour slowed expansion initiatives.
The Star Alliance carrier says in a Shanghai Stock Exchange filing that a net loss of 435.1 million yuan ($62 million) was recorded for the 2007 calendar year, compared with a net profit of 8.19 million yuan in 2006.
It says the loss came despite a 23% increase in revenue, to 12.3 billion yuan from 10.02 billion yuan.
Demand grew strongly during the year but Shanghai Airlines says its expansion efforts were slowed in part as a result of difficulty securing qualified personnel. It also faced more intense competition and higher fuel costs.
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Source: Air Transport Intelligence news
Source: FlightGlobal.com
