CHINA Eastern Airlines Corp, the nation's third-largest carrier, returned to profit in 2007 after two straight years of losses, helped by rising air travel demand and exchange gains.

Net income was 269 million yuan (US$38 million), or 0.06 yuan a share, compared with a loss of 3.3 billion yuan, or 0.68 yuan, in 2006, the Shanghai-based carrier said in a statement to Hong Kong stock exchange yesterday, citing international accounting standards. Sale rose 13 percent to 42.5 billion yuan.