BEIJING (Reuters – China’s biggest three airlines have reported greater losses in the last quarter of 2021. It marks the second year in red for COVID-19. As the country tries and halts the rapid spread of the virus, there are no guarantees that a recovery will be possible.

China Eastern Airlines (NYSE 🙂 a Shanghai-based carrier, reported that its net loss increased to 4.05 Billion Yuan ($637.64 Million) from 2.95 Billion Yuan in its third quarter. This brings its total loss for the year to 12.2B yuan. It is more than the loss of 11.8 billion dollars in 2020.

Following the last week’s crash of a Boeing (NYSE.) 737-880 jet, which killed 132 passengers and injured 133 others, regulators are now more closely monitoring the airline. As a precaution, 223 aircraft of this type were ground to prevent further investigation.

According to the carrier’s annual report, the company will monitor and assess the progress of its ongoing investigation into the causes of the crash. It also plans to evaluate its impact on financial results.

The flag carrier of China, Beijing-based Air China (OTC) reported that its fourth-quarter net loss increased to 6.32 Billion Yuan from 3.54 Billion yuan. It also posted a loss for the full year at 16.6 billion Yuan.

China Southern Airlines suffered a net loss of 5.98 Billion Yuan for its fourth quarter, following a previous quarter in which it posted 1.43 Billion yuan in red. The company reported a loss of 11.2 billion Yuan for the full year.

Guangzhou’s airline forecasted a rise in the deliveries of Boeing 737 Series aircraft starting in 2022. This is because Chinese carriers will resume commercial service of the 737 MAX which has been grounded in China since over two-and-a-half years ago.

China’s domestic market for travel, having rebounded rapidly due to the success of its COVID-19 vaccine in the initial days of the pandemic is suffering heavy losses.

According to third-party data providers in aviation, more than two-thirds are cancelled each day across China. Financial capital Shanghai is currently locked down by 26 million people.

OAG Data reported on Tuesday that China’s current seat capacity was 10.2% lower than a week ago and 24.4% less than the week prior.

Strong yuan currencies were again positive factors this year. This provided relief to Chinese airlines, which have had to pay large portions of foreign debt in U.S. Dollars.

High fuel prices, already high last year, will continue to impact bottom line numbers this year. Russia’s conflict in Ukraine increases geopolitical risk and intensifies inflationary pressures throughout the supply chain.

Futures were at $113 per barrel, up by 45% over last year.

China continues to be virtually isolated from the international market as many Chinese passengers are left stranded in countries far away due to China’s “circuitbreaker” system. It suspends flights that have already been reduced when it receives COVID-19-positive arrivals.

According to Flight Master aviation data provider Flight Master. However, many of these domestic flights could be cancelled.

($1 = 6.3515 renminbi)