Air China and China Southern Airlines on Friday narrowed losses in the second quarter after a hit from low Lunar New Year traffic, but domestic COVID-19 outbreaks and border closures are set to weigh on the rest of the year.

Beijing-based Air China, the country's flag carrier, said its net loss attributable to shareholders narrowed to RMB 578 million ($89.27 million) from RMB 6.2 billion in the first quarter, taking first-half net loss to RMB 6.8 billion.

China Southern Airlines trimmed its loss to 682 million yuan from RMB 4.0 billion in the first quarter for first-half total shortfall of a RMB 4.7 billion.

Second-half earnings are expected to receive a boost from the pent-up domestic travel demand during the Mid-Autumn Festival and the week-long National Holiday in the fourth quarter, as health experts expect current outbreaks in China to be contained by end-August.

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