Air China, the country's leading carrier, recorded losses of 1.94 billion yuan (US$284 million) in the third quarter as against profits of 2.187 billion yuan for the same period last year.

According to the quarterly report the company released on Wednesday, higher fuel costs, as a result from price hikes for oil on international markets, and lower returns on investments due to a bearish run on capital markets, accounted for the losses.

Lower demand for services was also blamed for the unsatisfactory performance.

The company's losses in the first three quarters of this year were 657 million yuan, as against profits of 3.488 billion yuan for the same period last year.

(Xinhua News Agency October 29, 2008)