Budget carrier Peach Aviation Ltd. said Tuesday that due to a shortage of pilots, it will cancel 894 flights in July and August, or 20 percent of its overall flights, including 86 international services connecting Osaka with Hong Kong and Okinawa with Taipei.

The number of cancellations for those two months rose from the company's earlier estimate by 56, as two trainees who were expected to become pilots resigned from the company in early May.

Between May 19 and Oct. 25, Peach is now expected to cancel 2,128 flights, or 16.5 percent of all flights, affecting around 27,000 passengers.

The company, an affiliate of ANA Holdings which is the parent company of All Nippon Airways Co., said it could see its revenue cut by about ¥3 billion because of the move.

In April, the company said it would cancel 448 flights in May and June, as many of its pilots had been absent for long periods due to health reasons and it could not promote copilots or recruit new crew as planned.

Peach estimates it will be forced to cancel 786 of its flights in September and October, but it will formally announce those cancellations in early July.

Japanese low-cost carrier Vanilla Air Inc., a wholly owned unit of ANA Holdings, will also cancel a total of 154 domestic flights in June due to a shortage of pilots, and is expected to accept personnel from All Nippon Airways.

Peach said it will similarly consider accepting pilots from companies such as ANA.