China Southern Airlines (SHA:600029, HKG:1055) said it expects its H1 loss to widen year over year due to passenger market shifts, high-speed rail competition and global economic instability, according to filings with the Hong Kong and Shanghai bourses.

Shares of the airline company fell nearly 4% in morning trade Tuesday in Hong Kong, while its Shanghai-listed shares dropped almost 2%.

The company expects attributable loss of 1.34 billion yuan to 1.75 billion yuan for the six months ended June 30, widening from 1.23 billion yuan in losses posted in the same period last year.