TOKYO -- Two of Japan's regional airlines, Airdo and Solaseed Air, announced Monday that they will merge in 2022 , a move that could portend more consolidation among airlines in the wake of the COVID-19 pandemic.

The merger aims to lower the two airlines' operating costs through standardization and more efficient use of resources, such as personnel and facilities. The carriers will set up a joint holding company in the fall of next year.

Hokkaido-based Airdo operates a popular route between Tokyo's Haneda Airport and Shin-Chitose Airport near Sapporo, the main gateway to Japan's northernmost main island. Solaseed Air, headquartered in Miyazaki, on the southern island of Kyushu, has routes connecting the island and Haneda.

The consolidation is a response to the heavy blow dealt to the two airlines by the pandemic. On Monday, Airdo posted a net loss of 12.1 billion yen ($110 million) for fiscal 2020 ended March this year. Solaseed Air also said on Monday that it had a net loss of 7.6 billion yen last fiscal year.

Like many airlines around the world, the industry in Asia has been hammered by the collapse of travel demand due to the coronavirus. In Japan, ANA Holdings and Japan Airlines are strengthening their capital bases through share offerings.

Last year, Korean Air Lines announced a $1.62 billion takeover of fellow South Korean carrier Asiana Airlines in a government-backed deal. In Southeast Asia, while Thai Airways International plans to go through rehabilitation after a bankruptcy filing last year, Malaysian airline AirAsia hopes to ensure liquidity by raising $82 million from TPG Capital and others.