Jan. 12--BEIJING -- The share price of one of the biggest airlines in China, China Eastern Airlines Corp, plunged Monday after the company revealed it has estimated losses of 6.2 billion yuan ($908 million dollars) on contracts aimed at trying to secure cheaper oil.

The share price of China Eastern, one of the three biggest airlines in China, fell by 7 percent on the Hong Kong Stock exchange, according to figures released by the bourse, ending Monday at HK$1.05 (US$0.14).

A statement from the firm released over the weekend revealed that it bought oil futures contracts last year to try to secure lower priced fuel supplies after the cost of oil soared to around $147 a barrel in July.

But oil prices have since slumped to about $50 a barrel, leaving China Eastern with hugely overpriced oil contracts to honor.

The firm also said in its statement that it is likely to make a "significant loss" in the financial year ending in March because of the slump in passenger numbers due to the economic slowdown.

"A pronounced global recession since the second half of 2008 led to a drastic decrease in air transportation demand. As a result the civil aviation industry is facing an industry-wide crisis," the statement said.

The company posted a net loss of 2.29 billion yuan in the first nine months of last year.

Hong Kong-based airline Cathay Pacific announced last week that its earnings are also likely to be poor this financial year because of the slump in travelers and losses from oil futures contracts.

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