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Shanghai Airlines forecasts heavy loss for 2008
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Shanghai Airlines, one of China's local airlines, said losses in 2008 might more than double from 2007 because of weak travel demand and hedging losses, the company said in a notice to the Shanghai Stock Exchange Tuesday.

The high oil prices, weak travel demand caused by the global economic slowdown and heavy hedging losses led to the loss, the carrier said in the notice.

It has lost 170 million yuan (US$24.9 million) in the fair value of fuel hedging contracts by the end of 2008.

The airline posted a net loss of 435 million yuan in 2007.

The country's airline companies faced a tough time last year. Last week, China Southern Airlines Co., the nation's largest airline by fleet size, and China Eastern Airlines Co., the country's third largest airline by fleet size, both forecast loss for 2008. Air China also predicted a huge loss for last year.

(Xinhua News Agency January 21, 2009)

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