China Eastern Airlines posted a first quarter net loss as it slowly starts to ramp up services.
The airline booked a 3.9 billion yuan (US$555.8 million) loss, with a revenue decline of 49%.
Last year it posted a 2 billion yuan profit.
The airline says the China market is in recovery mode but global markets could still be depressed for some time.
"There is still great uncertainty in the time span and severity of the epidemic around the world, which may magnify the impact on or result in a delay in the recovery of travel demand," the airline said.
It expects the uncertainty to affect revenues until at least the end of the next quarter.
However the country’s second largest domestic carrier hopes to increase seat capacity to about 70% of pre-pandemic levels by the end of June.
Air China Ltd also reported a Q1 loss of $679.7 million with revenue down 47%.
