China Eastern Airlines (SHA:600115, HKG:0670) announced that its net profit attributable to the equity holders for the period from January to June 2012 drawn up in conformity with China Accounting Standards for Business Enterprises (CASBE) is expected to represent a more than 50% decrease compared to that of the corresponding period last year.

The company's net profit attributable to the equity holders was RMB2.452 billion for the corresponding period in 2011.

The slowdown in the growth of the demand in the civil aviation market of passenger traffic arising from global economic recession and the inadequate demand in the international cargo traffic market in the period from January to June 2012 affected the growth of the air transportation business of the company. Meanwhile, the year-on-year growth in the price of jet fuel resulted in an increase in the operating costs of the company. Furthermore, as the exchange rate of Renminbi remained relatively stable during the period from January to June 2012, the exchange gain of the company for this period was significantly lower than the figure recorded in the corresponding period last year.