China Eastern Airlines has raised seven billion yuan ($1.02 billion) by selling two lots of shares to its parent, China Eastern Air Holdings.

The Shanghai-based carrier says in a statement to the Shanghai stock exchange that it sold 1.44 billion 'A shares' at 3.87 yuan each and 1.44 billion 'H shares' at one yuan each. This comes to seven billion yuan.

This transaction increases China Eastern Air Holdings' stake in China Eastern to 75% from 60%, it adds.

Its parent bought the shares to help re-capitalise the airline which has made large losses in recent times and is working on a merger with another loss-making carrier, Shanghai Airlines.

Source: Air Transport Intelligence news