China Eastern Airlines paid CNY2.59 billion yuan (USD$379.5 million) for fuel in the first quarter, 37 percent less than the CNY4.11 billion it spent in the same period a year ago as global fuel costs retreated.

It said aviation fuel costs for the full year are expected to be lower than the CNY18.4 billion it spent in 2008.

The Chinese airline said late on Tuesday that losses from settlement of aviation fuel hedging contracts in the first quarter were about CNY916 million, compared with a CNY130 million loss in the fourth quarter of 2008 as global fuel prices declined.