Singapore-based budget carrier Tiger Airlines, which operates as Tigerair, saw its shares slump by as much as 8% after the company reported a huge increase in its fourth-quarter net loss.
Losses rose to S$96 million Singapore dollars (£45 million) in the three months to the end of March, from S$15 million in the same period last year.
Tigerair, part owned by Singapore Airlines, plans to review its Indonesian joint venture Tigerair Mandala.
The airline said: “Due to an industry over-supply of capacity, Tigerair continues to operate in a challenging business environment.
“It is expected that yield and load factors will remain under pressure.”
The airline, established a decade ago, runs a fleet of 49 Airbus A320s to more than 50 destinations in the Asia-Pacific region.
Tigerair has lost about a quarter of its market value this year. Its shares fell to 40 Singapore cents on Monday, the BBC reported.
Group chief executive Koay Peng Yen said: “In the past year, we have executed difficult plans to clear the deck and put the group on a stronger foundation.
“The divestment of our overseas units and provisions for future charges ensure that the company can start off on a better footing in the new financial year.
“We have also proactively addressed excess capacity issues faced by the group. In fact, the industry as a whole needs to reflect on the toll that overcapacity has created.
“We recognise that the restructuring of Tigerair is not an overnight process, and we are working very hard at executing our turnaround strategy. We are leaving no stone unturned.”