The States-owned airline already lost £2.3m. at the end of 2016, which is combined with the £3.9m. loss expected this year.
Addressing States members yesterday, Policy & Resources president Gavin St Pier said there had been a decrease in passenger revenues as a result of both flat market conditions and the poor weather conditions experienced at the beginning of the year.
Other reasons for the loss, Deputy St Pier said were:
n Extra maintenance costs in both the ATR and Dornier fleets
n Higher than anticipated crew costs in the transition from the Trislander fleet
n Additional compliance and handling costs
n Exchange rate movements and increased fuel costs.