China’s Juneyao Air swung to a loss in the first quarter of this year and expects further losses for the remaining first half of 2020 as the coronavirus pandemic puts a damper on demand.

The Shanghai-based carrier posted a net loss of over CNY491 million ($69.5 million) in the first quarter of 2020, reversing the net profit of CNY400 million during the same period in 2019.

Operating losses for the quarter were over CNY563 million, as compared to an operating profit of CNY459 million last year. Revenue for the quarter ended 31 March was CNY2.38 billion, a decline of 42.4% year-on-year.

The airline’s cash position at the end of the first quarter of 2020 amounted to CNY1.86 billion, down 21% on the corresponding quarter in 2019.

“The coronavirus pandemic has had a great impact on the transportation industry where the company is located. Demand and willingness of passengers to travel have declined,” Juneyao Air says.

It adds that it has been adjusting capacity, strengthening cost control, and reducing its annual aircraft introduction plan to ensure the company’s cash flow is stable.

Up to now, there is great uncertainty about the duration and severity of the pandemic. Based on the preliminary judgement of the current situation, the company expects that the accumulated net profit in the first half of 2020 will have a loss.”