China Eastern to stem fuel hedging losses

The new management of China Eastern, the nation's third largest airline, is taking steps to stem mounting losses from its wrong bets on fuel hedging contracts.

After a slew of other cost cutting measures recently, the company is reportedly trying to reduce its positions in what is commonly known as fair-value hedging transactions.

It had already incurred book losses of more than 6 billion yuan as of end December through these transactions.