China Eastern Airlines Corp has been given a US$1.5 billion credit line from Shanghai Pudong Development Bank Co, giving the carrier another source of cash to help it through its funding difficulties, Dow Jones reported.

The airline said earlier this month it would post a "substantial" loss for 2008, mainly because of bets on hedging fuel prices that had cost the company US$906.1 million as of Dec. 31.

China Eastern and Shanghai Pudong Development Bank (SPD Bank) said in a joint statement that the credit line will include bond financing, asset securitization and international settlements.

The airline said last week that its parent company will provide it with a US$811.5 million, six-month loan to boost its working capital and reduce financial costs.

That came after Beijing injected US$1.02 billion into China Eastern last month because of its losses from fuel hedging and a sharp contraction in global aviation demand.

China Eastern is the country's third-largest carrier by fleet size after Air China Ltd and China Southern Airlines Co.

Photograph: China Eastern Airlines and Shanghai Pudong Development Bank senior executives at the agreement signing ceremony on Jan. 19. Photo by Ye Kewen / CARNOC.com.