TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

ANA posts record net loss of $2.9 billion in April-December

The loss is a reversal from a net profit of 86.45 billion yen in the same period last year, underscoring the severity of the hit from the spread of the novel coronavirus to the airline industry.

  (Kyodo News)
Tokyo, Japan
Fri, January 29, 2021

Share This Article

Change Size

ANA posts record net loss of $2.9 billion in April-December The tail of ANA aircraft at Naha Airport in Okinawa Prefecture, Japan, on July 12, 2017. (Shutterstock/File)

A

NA Holdings reported Friday a record net loss of 309.58 billion yen ($2.96 billion) in the April to December period, as the major Japanese airline has been reeling from the global coronavirus pandemic that hurt travel demand at home and abroad.

The loss is a reversal from a net profit of 86.45 billion yen in the same period last year, underscoring the severity of the hit from the spread of the novel coronavirus to the airline industry.

ANA, the parent of All Nippon Airways, posted an operating loss of 362.41 billion yen in the nine-month period, as revenue tumbled 66.7 percent to 527.61 billion yen.

The airline maintained its earnings outlook for the current business year through March. It projects a record net loss of 510 billion yen on revenue of 740 billion yen.

The net loss came as ANA booked a special loss of 76 billion yen.

The global coronavirus pandemic has caused travel restrictions, dealing a severe blow to airlines globally.

ANA's revenue from international flights plunged 93.6 percent from a year ago to 32.3 billion yen as the number of passengers saw a 95.9 percent fall to only about 321,000 in the nine-month period as Japan's sweeping entry ban was in place.

Sales from flights were down 71.7 percent to 156.3 billion yen after the number of passengers fell 71.5 percent to 9.91 million.

The Japanese government launched a subsidy program to help struggling local tourism last year but was forced to suspend it in late December due to resurging coronavirus cases. Travel demand normally increases in Japan during the New Year holidays from late December to early January.

ANA has been canceling domestic flights to cope with the crisis.

The outlook for travel demand for the rest of fiscal 2020 and beyond remains uncertain as the pandemic is expected to take more time to be brought under control even as vaccinations have begun in some parts of the world including the United States and Britain.

ANA is seeking to become leaner to overcome the pandemic, cutting costs and reducing its fleet such as B-777s that are suitable for long-distance flights. President and CEO Shinya Katanozaka has promised that the airline will return to profitability in fiscal 2021.

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.