John Menzies warned today that earnings would not grow in 2019 as the British aviation servicing company battles weak cargo volumes and cuts in flight schedules.
The warning sent its shares more than 20% lower.
European airlines have warned of a challenging market in terms of passenger numbers, while cargo volumes are also stagnating.
"The overall aviation market is having a difficult year. This inevitably is having an impact on our full year outturn," said the company's chief executive Giles Wilson, the former finance officer who was promoted this year.
Its warning comes after Germany's Lufthansa sent shockwaves through the European airline sector last month when it cut its full-year profit forecast.
This in turn followed gloomy comments from Ryanair, while Air France-KLM also reported a widening quarterly loss.
Menzies also said performance in the first half of the year has been below expectations, adding it would save at least £10m as part of a cost-cutting plan.
Menzies offers ground handling, fuelling and cargo handling services for airlines.
It is considering strategic and structural options and has appointed Swiss private equity fund manager Christian Kappelhoff-Wulff to its board.
The review followed the departure of CEO Forsyth Black in March.
Menzies, which traces its roots back to a bookshop founded in 1833, became a pure play aviation business after it agreed to sell its newspaper distribution business to a private equity firm last year.
