Japanese discount airline Skymark Airlines cut its annual operating profit forecast by 89 percent on Monday after a shortage of pilots forced it to cancel hundreds of flights.
Japan's biggest discount airline had said last week it would cancel 10 percent of its flights in June after two pilots left, sending its stock down sharply amid investor speculation its profits would be hit.
The company, which is struggling to boost its presence in a market dominated by Japan Airlines and All Nippon Airways, said it now expects operating profit for the year ending next March 31 to come to JPY100 million yen (USD$950,100).
That is down sharply from the JPY900 million it predicted less than a month ago. It also cut its annual revenue forecast by 2.4 percent to JPY48.3 billion.
Budget travel has been booming in Asia, following a similar trend in the United States and Europe, but carriers have been struggling to secure enough pilots to meet demand.
In addition to the flights cancelled in June, Skymark said it is reviewing its schedule from July.
The cancelled flights include some to Japan's northernmost main island of Hokkaido, which hosts the G8 summit next month.
Prior to the announcement, Skymark ended down 3 percent at 193 yen, underperforming a 1.5 percent fall in the Tokyo stock exchange's Mothers startup market, where its shares are listed.
On June 3, the day after news of the pilot shortage emerged, Skymark's shares tumbled 9.4 percent.
