CHINA Eastern Airlines Corp. yesterday said a brewing trade war between China and the United States could prompt it to adjust capacity and frequency on associated routes in the expectation that it may impact passenger travel and cargo.

China Eastern, the nation’s second-largest carrier, said it had set up a group to study the issue. The Trump administration Tuesday imposed 25 percent tariffs on some 1,300 Chinese products while China has put tariffs on U.S. fruit and nuts.

Chief executive Ma Xulun said at a news conference yesterday that the trade war could have a “certain impact” on passenger and cargo business.

“We will make some adjustment to our fleet if passenger numbers fall on China-U.S. routes, for example by switching the Boeing 777 to the Airbus 330-200. If the impact is more severe, we may make adjustments to airline frequency,” said chief marketing officer Dong Bo.

The airline, which last week reported its highest annual profit in more than 20 years, also said it was looking forward to the launch of China’s crude futures contracts and would consider buying when the appropriate timing and opportunity arises.

Yuan-denominated oil futures were launched last month, becoming China’s first commodity derivative open to foreign investors. They are also the culmination of a decade-long push by the Shanghai Futures Exchange to give the world’s largest energy consumer more power in pricing crude sold to Asia. (SD-Agencies)