China Eastern Airlines to receive fresh funding

China Eastern Airlines will receive 31 billion yuan ($4.6 billion) from four new investors as the carrier seeks to overcome the impact of the Covid-19 pandemic.

China Life Investment Holding Limited, a subsidiary of the state-owned China Life Insurance, will inject 11 billion yuan into the airline, while Shanghai Jiushi Group, another state company, will inject ten billion yuan, according to the public filing.

The equity diversification plan will also see China Reform Holdings Corporation and China Tourism Group, both state-owned entities, inject 5 billion yuan each.

The move is part of a long-standing effort on behalf of the Chinese government to diversify ownership structures among its state-owned enterprises.

China Eastern posted a net loss of 8.5 billion yuan in the first half due to the Covid-19 pandemic.

China Southern Airlines also announced last year that it would receive a capital injection of 30 billion yuan from three investors.