Hainan Airlines, China's fourth-largest carrier said on Friday it expected to report a loss for 2008 because of slumping traffic demand and higher fuel prices during much of the year.

Hainan Air booked a net profit of CNY651 million yuan (USD$95.22 million) in 2007.

Air traffic in the country eased significantly, especially in the second half of 2008, as a slowing economy curbed air travel demand.

China's three biggest airlines, Air China, China Southern Airlines and China Eastern Airlines, had also predicted they would post losses for 2008.

The carriers will issue detailed 2008 financial reports in the coming weeks.