Luxury resorts operator Banyan Tree’s quarterly earnings have slipped into the red.

It said today that it made a net loss of 4.2 million dollars in the second-quarter ended in June.

This compares with a net profit of 3.5 million dollars over the same period a year ago.

But Banyan Tree still managed to remain profitable for the first half this year, reaping a net income of 1 million dollars.

That’s down 95 percent compared to the 18.9 million dollars of net profit made over the same period last year.

Revenue for the second quarter fell 44 percent to 59.8 million dollars.

Banyan Tree says demand for its rooms dropped due to the global economic crisis, the H1N1 flu pandemic as well as political unrest in Thailand.

Going forward, it expects results in the current quarter to be better, though it cautions it could still be unprofitable given that the period is a traditional low season.