Airline Regional Express has forecast a full-year loss of $15 million due to Victoria’s coronavirus outbreak.
The airline, also known as Rex, had been on course for earnings to break-even but on Wednesday said it now expected a statutory loss before tax of $15 million.
Rex has cancelled many flights to and from Melbourne.
The disruption comes after the airline in March began flying between Sydney and Melbourne as it challenges Qantas, Jetstar and Virgin in domestic travel.
Since May, a number of states and territories have required travellers isolate for two weeks after arriving from Victoria. This has reduced travel demand.
Rex said customers whose flights were cancelled due to the virus were being offered credit refunds.
Shares reached a record $2.88 in December after the group said it would enter the domestic flights market.
At 1143 AEST, shares were up by 0.4 per cent to $1.26.