China’s three biggest airline companies reported annual losses for 2023 as international traffic remained well below pre-pandemic levels. 

China Southern Airlines Co., the country’s largest carrier by number of planes and passengers, lost 4.2 billion yuan ($581 million) in 2023, while Shanghai-based China Eastern Airlines Corp. reported a net loss of 8.17 billion yuan. Flagship carrier Air China Ltd. also reported a 1.05 billion yuan net loss, according to stock exchange filings. 

Though losses significantly narrowed compared to 2022, China’s major carriers have continued to lose money since the start of the pandemic. The country has been among the slowest major aviation markets to recover from the pandemic with international travel well below 2019 levels and concerns about an oversupply in the domestic market.

The three airlines didn’t provide detailed reasons for their losses. 

International travel for China’s three large carriers is due to grow to about 6,000 flights a week this year, 80% of pre-pandemic levels, according to data from the Civil Aviation Administration of China.

That improvement in international travel should help offset revenue impact from lower domestic passenger yields, Bloomberg Intelligence analyst Tim Bacchus wrote in a note.