On Jan. 18, shares in China Eastern Airlines surged after the firm said it expected to return to the black in 2009 due to the rebound in the aviation industry and lower fuel costs.

The nation's third-largest carrier in terms of fleet size saw its Shanghai-listed shares jump by the daily trading limit of five percent to 6.65 yuan (US$0.97) in the morning session.

"The results of the company for 2009 will substantially grow compared to the same period last year," China Eastern said in a statement filed with the Shanghai Stock Exchange over the weekend.

"The results of the company for 2009 are expected to turn from loss into profit."

The airline, which posted a net loss of 13.9 billion yuan for 2008, did not give specific figures for its earnings last year in the preliminary announcement. Complete annual results are due on Apr. 10.

China Eastern said a reversal in the fair value of fuel hedging contracts helped it recover from 2008, when it booked paper losses of about 6.2 billion yuan (US$908 million) on the deals due to a sharp drop in oil prices.

It also attributed the 2009 improvement to the recovery of the aviation industry and government support.

The official People's Daily reported earlier this month that China's aviation industry had turned a combined profit of 12.2 billion yuan in 2009, and the number of passengers increased 19.7 percent year-on-year to 230 million.

Photograph: The fleet of China Eastern Airlines at Shanghai's Pudong International Airport in June 2004. Photo by CARNOC.com message board member - Sonic.