China Eastern Airlines' share price yesterday rose 6.7 per cent to 95 HK cents on news of a profit tax cut following a change in company registration. However, analysts remain concerned about its profit outlook because of sluggish global air traffic demand. The H share - one of China's three largest airlines - said yesterday its profit tax had been reduced from 33 per cent to 15 per cent. This was due to a change in its place of registration from Shanghai city to Pudong district, entitling it to concessions under the district's tax incentive policy. Pudong, part of the greater Shanghai area, has implemented the concession to attract more businesses. It will be applied retrospectively on China Eastern's profit tax calculation from July 1 this year. Company secretary Luo Zhuping said the company received approval to move its registration to Pudong recently and the tax concession was effective with no specific time limit. ABN Amro, in a research report released yesterday, estimated China Eastern would save 29 million yuan (about HK$27.17 million) this year and 47 million yuan next year, accounting for 11 per cent and 24 per cent of the respective net profits forecast by the European brokerage. Despite the savings, the brokerage said its profit outlook remained weighed down by the 'tough operating environment' amid the global economic slowdown and falling travel demand in the wake of the September 11 terrorist attacks on the United States. 'We expect its international passenger and cargo routes, which account for 39 per cent of total revenue, will continue to suffer due to the sluggish global air traffic outlook,' the brokerage said. Yield, a profitability measure on passenger and cargo operations, was expected to be under great pressure, it added.