BEIJING, Aug 30 Reuters China39;s leading stateowned airlines posted losses in the first half of the year, weighed down by a slowerthanexpected international travel rebound, domestic oversupply and more intense competition as aviation capacity returns globally.

China39;s top three airlines, Air China, China Southern Airlines and China Eastern Airlines, last reported annual net profits in 2019 before the COVID19 pandemic took hold.

The country39;s flagship carrier Air China posted a firsthalf net loss of 2.78 billion yuan 392 million, narrower than a loss of 3.45 billion yuan in the same period last year, it said on Thursday.

China Southern Airlines reported net losses of 1.23 billion yuan in the first half, narrowing from a 2.9 billion yuan loss a year earlier. The Guangzhoubased airline made a 760 million yuan profit in the first quarter.

Air China said international traffic grew in the first half, with passenger numbers above 80 of 201939;s prepandemic levels. But it said its traditionally advantageous North American routes were recovering slowly.

Flights between China and the United States have been held up by political issues and low demand and are around a fifth of what they were in 2019, flight schedule data from Cirium and Chinabased aviation data provider VariFlight show.

As international routes are not resumed fully widebody planes are used domestically, intensifying oversupply, Air China said.

China Eastern, headquartered in Shanghai, will report its…