China Airlines Cuts 2002 Forecasts by 12%

China Airlines’ problems mounted as it cut its 2002 earnings forecast by 12% in the wake of Saturday’s fatal crash, and said Delta Air Lines Inc. had postponed a code-sharing tie-up.

As travel agents reported passengers canceling reservations on Taiwan’s biggest airline, its shares fell by the daily limit of 7% for a second day and a credit rating company downgraded its debt.