China Eastern Airlines plans to delay or cancel about half of the aircraft it is due to receive from Airbus and Boeing this year.
The airline's president Ma Xulun told reporters at a news conference in Shanghai that the airline is due to receive a total of 29 aircraft this year from Airbus and Boeing but it plans to either delay or cancel about half of these.
He also says China Eastern has reached an agreement with China Aviation Industry Corporation (AVIC) to cut China Eastern's 40% stake in start-up Xingfu Airlines.
Xingfu is a new domestic regional carrier that China Eastern and AVIC are establishing in Xian to operate on smaller regional routes and showcase Chinese-built aircraft made by AVIC group companies.
Xingfu is due to launch operations this year using Xian Aircraft MA60s and is expected to lose money initially.
China Eastern has already been losing millions and recently received a financial bail-out from the Chinese Government.