Analysts at the German bank now expect the letter and parcel carrier to post a loss of £131mln for the current financial year. The previous estimate was for a profit of £57mln.
READ: Royal Mail warns of ‘significant uncertainty’ as coronavirus hits UK post and key Italian parcel market
Royal Mail said last week that it expected its UK post business to be “materially loss making” this year due to the coronavirus pandemic as marketing campaigns, particularly from the travel sector, were cancelled.
Deutsche Bank's analysts noted that it is difficult to forecast volumes and pricing and the “dramatic impact” they can have on profits.
Royal Mail shares still rose 1% higher to 127p on Tuesday morning, reflecting a market rally.