Air Transport

China Eastern Airlines has received conditional approval from the China security regulatory commission to place 1.35 billion A-shares with institutional investors, at a minimum of 4.75 yuan (70 US cents) a share.

The recipients are other Chinese government enterprises, including the airline's parent China Eastern Group, says the carrier, adding that it will make a further announcement once it receives final approval.

China Eastern made a net profit of 23.2 million yuan for the three months ending 30 September, versus a net loss of 2.33 billion yuan in the corresponding period last year.

It had an operating loss of 73 million yuan, but ended with a net profit thanks to a 145 million yuan "fair value gain" and 154 million yuan in non-operating income. The non-operating income reportedly came from fuel hedging gains.

China Eastern, like many other carriers in China, has enjoyed an increase in passenger traffic in recent months, driven largely by the domestic market.

Earlier this year, China Eastern acquired rival Shanghai Airlines.