CHINA AIRLINES FORECASTS TURNAROUND

CHINA AIRLINES FORECASTS TURNAROUND

   China Airlines predicts a strong turnaround in 1999, following solid
first-quarter results.
   The Taiwanese carrier reported a pre-tax profit of NT$800 million ($24.4
million) and a 17-percent increase in operating income, to NT$13.87 billion
($423 million) for the first quarter.
   The airline projects pre-tax profit of NT$1.72 billion ($52.5 million),
compared to a loss of NT$2.26 billion in 1998, due to a slump in regional
air traffic, the Asian financial crisis and the impact of flight safety
issues.
   China Airlines estimates a cargo-load factor of 83.5 percent for the
first quarter and expects the load factor to exceed 85 percent for the
year, due to fleet renewal program. The airline will retire six A300B4-200
aircraft and two 747SPs while taking delivery of a B747-400 and two
B737-800s.