BEIJING/SEOUL (Reuters) -China’s two largest airlines narrowed their first-half losses but remained firmly in the red as a capacity surplus kept fares low, earnings reports released on Thursday showed, underscoring the fragility of the sector’s post-pandemic recovery.

Flagship carrier Air China reported a net loss of 1.8 billion yuan ($252 million) for the six months to June, 35% lower than the loss of 2.78 billion yuan a year earlier.

Guangzhou-based China Southern Airlines recorded a loss of 1.5 billion yuan, 64% less than the 4.21 billion yuan loss in the same period in 2024.

The carriers have blamed losses on imbalanced supply and demand, more price-sensitive travellers and competition from China’s ever-expanding high-speed rail network. Geopolitical uncertainty and a slow rebound i

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