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Skymark shares sink deeper on quarterly loss

Shares in Skymark Airlines tumbled more than eight per cent early Friday (August 1) after the budget airline embroiled in a row with Airbus said its quarterly loss had ballooned.

TOKYO: Shares in Skymark Airlines tumbled more than eight per cent early Friday (August 1) after the budget airline embroiled in a row with Airbus said its quarterly loss had ballooned.

Skymark Airlines fell 8.61 per cent to 191.0 yen, on top of a string of sharp drops this week. The stock has lost more than one third of its value, or 8.86 billion yen ($86 million), since the row with Airbus came to light.

Airbus said on Tuesday it had cancelled a $2.2-billion jet order from Skymark, even as the airline said it was negotiating with Airbus to "revise" the multi-plane order. The low-cost carrier said that Airbus threatened it with "overpriced" fees to cancel -- or slim down -- the order.

Skymark said late Thursday its loss in the three months to June expanded to 5.80 billion yen ($56 million), four times higher than its shortfall the previous year. The company said in a financial statement that it would consider suspending service on unprofitable routes and borrowing money from banks as there were doubts over whether the company would be able to remain as a going concern.

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