Shandong Airlines is expecting a net loss of up to CNY28.5 million ($4.14 million) for the six months ended 30 June, citing the ongoing grounding of the Boeing 737 Max among the reasons for the forecast.
In a stock exchange disclosure, the carrier put its guidance for attributable net profit to be between CNY15 million and CNY28.5 million.
This was in stark contrast to the CNY203 million net profit reported for the same period last year.
Apart from the 737 Max grounding, the airline noted that currency fluctuations that have impacted its costs, and it has faced increased competition on some sectors of its network.
The 737 Max is the subject of an ongoing worldwide grounding, after two deadly crashes in a span of less than of five months. China was the first country to ground the Max on 11 March.
Cirium’s Fleets Analyzer shows that Shandong operates 117 aircraft, including seven 737 Max 8s . Schedules data indicates the carrier flies to 91 destinations.