TheJakartaPost.com - PALEMBANG, South Sumatra: A thick haze from forest fires has been blamed for the financial losses of airlines in Palembang and a shipping accident on Musi River.

Adam Air airline reported financial losses of more than Rp 79 million from three flight cancellations. The haze has also forced the company to cut flights between Palembang and Jakarta to save costs.

"Afternoon flights were cut because the haze is at its worst in the afternoons," said the company's branch manager in Palembang, Muhammad Helmi.

Two other airlines, Sriwijaya Air and Garuda, have reported financial losses due to the haze.

Sriwijaya's district manager in Palembang, Ismihadi, said the haze had forced the airline to stop afternoon Palembang-Jakarta flights.

The haze was also blamed for causing a collision late Tuesday between cargo ship MV Coral Tumbuan -- which was on its way to Singapore -- and a barge carrying sand in Musi River. No casualties were reported in the accident.