Air China issued a profits warning for 2022 amid a slump in demand due to the impact of the pandemic.
The Beijing-based airline said it expects to report an annual net loss of up to 39.5 billion yuan (£4.74 billion).
The carrier said: “In 2022, due to the continued impact of Covid-19 pandemic, passenger travel demand remained low.
“The markets of the main bases of the company suffered repeated impacts of the pandemic.
“In particular, the capacity and total traffic in Beijing market have fallen to the lowest level since the start of the pandemic.
“Meanwhile, due to multiple adverse factors such as high oil prices and exchange rate fluctuations, it is more difficult for the company to improve its operation, and the invested enterprises related to the main business were also seriously affected.”
The Star Alliance member insisted that it has been “determined to control losses and extricate itself from difficulties” in the face of the pandemic “to maintain the overall stability of business situation”.
Air China added: “In the face of pandemic, the company has been co-ordinating overall arrangements for safe operation, pandemic prevention and control, production and operation.”