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China Eastern Airlines closed the books last year with a net loss of 12.2b yuan ($1.92b), the carrier going deeper into the red as the result of China's strict coronavirus rules limiting international flights. The massive loss came as revenue climbed 14% to 67.1b yuan, according to Wednesday's earnings statement. Domestic flights benefited from the early success of China's "zero-COVID" policies. Passenger traffic for those routes rose 9% on the revival of vacations and business trips within the country. But those zero-COVID policies caused the passenger count on international routes to plunge by 88%. China Eastern lost out on the higher unit prices generated by cross-border flights, producing red ink that exceeded 2020's loss of 11.8b yuan. China limits the number of landings by international flights as well as seat occupancy rates, based on the COVID-19 situation overseas. For that reason, international flights had an average occupancy of 45%, well below the 68% average for domestic flights. China Eastern's losses echo the results of its biggest peers. China Southern Airlines, the country's leading carrier, recorded a net loss of 12.1b yuan last year. Air China, the flag carrier and second-biggest airline, posted a 16.6b yuan loss. The fallout from last week's crash of China Eastern Flight MU5735 is another concern. It may take months or years for investigators to determine the cause of the accident, which killed all 132 passengers and crew members.<br/>

The cause of the crash of the China Eastern Airlines jet last week must be determined as soon as possible, state media said on Thursday, following a meeting of China's highest decision-making body helmed by President Xi Jinping. Information about the March 21 crash, which killed all 132 people onboard, must be released in an open, timely and transparent manner, state media said in a report on the meeting of the seven-person Standing Committee of the Communist Party's politburo, China's top leadership. A nationwide safety inspection should also be launched to prevent as much as possible the occurrence of safety accidents, state media said. If accidents do happen due to negligence, not only will the personnel in charge be punished, the relevant top officials will also be investigated, state media said. Earlier on Thursday, an aviation official said China has completed the main search and rescue work at the mountainside in southern China where the crash of the Boeing 737-800 happened, and a preliminary report is expected within 30 days of the disaster. A final report into the crash will be completed and made public after the investigation is concluded, CAAC safety head Zhu Tao told reporters. Citing the Standing Committee meeting, state media said all relevant parties investigating the crash are to gather experts to comprehensively analyse the aircraft's flight data and other evidence, and find out the cause and nature of the crash "as soon as possible".<br/>

Air France-KLM will renew the mandate of CEO Ben Smith for an additional five years, the Franco-Dutch airline group said in a statement on Thursday. The group added that Marjan Rintel would replace Pieter Elbers as CEO of its Dutch arm KLM from July 1. "These two decisions by the Board of Directors stabilise the governance of the group at a key moment in its history," Chairwoman Anne-Marie Couderc said. Rintel previously held executive roles in Air France-KLM and is currently head of the NS, Netherland's leading passenger railway operator. The group's board had decided in January against renewing Elbers' mandate for a third term. Smith has helmed Air France-KLM since 2018 and through the coronavirus pandemic, during which the company received billions in state aid and announced large-scale job cuts. <br/>

Kenya Airways’ board gave approval for the carrier to hedge prices for more than 35% of its fuel needs and is in talks with the African Airlines Association for bulk fuel purchases in a drive to cut costs. Fuel accounts for at least a quarter of costs for the airline in which the Kenyan government has a 48.9% stake, CEO Allan Kilavuka said. “During the pandemic, even shortly thereafter, there was no need to hedge because hedging is expensive as well,” he said. “We will look for counter parties when the fuel price stabilizes and determine how much of our fuel we want to hedge so that we mitigate against the volatility.” The airline known as KQ last had a fuel hedge during February-July 2020. Direct operating costs advanced 33% last year, driven partly by the global rise in fuel prices, according to the company. Jet fuel climbed more than 1.4 times from a year ago to $161.60 per barrel last week, according to the IATA’s Jet Fuel Price Monitor. The loss-making carrier survived the pandemic through government bailouts and restructuring. It expects another 20b shillings ($173.8m) allocation from a supplementary budget approved by lawmakers this week. The cash will be a loan, although the government could decide to convert it into equity in future, Kilavuka said, without providing the terms of the financing. “A portion of it is to support restructuring of the airline, in terms of renegotiating some of the terms of engagement with our suppliers, part of it is general working-capital support for the business and operational support. Part of it is to help stabilize our balance sheet,” Kilavuka said.<br/>

Delta will sponsor Korean professional tennis player Kwon Soon-woo, the carrier said Thursday. The airline will cover Kwon's flights departing from Incheon International Airport to the US and support his career, while Kwon will wear uniforms featuring the airline's logo and promote the carrier as a brand ambassador until March 2023. "Delta Air Lines has been supporting promising athletes on the global stage that connect Korea and the US and Kwon is the most ideal player who fits the company's mission to 'keep climbing,'" said Kim Seung-su, director of sales at Delta Air Lines Korea. In celebration of the sponsorship, the airline is holding a promotional event on Kakao Talk offering limited editions of tennis jackets, hats, and tennis balls with Kwon's signature as gifts. Since his professional debut in 2015, Kwon won the Seoul Open Challenger in May 2019 and has remained in the No. 1 position in the men's single game in the Korean Tennis Association. He won the men's single at the Astana Open on the ATP Tour in September last year, becoming the first Korean to do so since 2003.<br/>