ANA Holdings posted Friday a record net loss of 404.62 billion yen ($3.7 billion) for the business year to March hurt by a pandemic-caused slump in travel demand, but it forecast a return to profitability in fiscal 2021.
ANA, the parent company of All Nippon Airways, expects a net profit of 3.5 billion yen in the current year through next March.
ANA has undergone cost-cutting by canceling flights and reducing its fleet to ride out the COVID-19 crisis that has hit the global airline industry.
For the fiscal year ended March 31, ANA reported an operating loss of 464.77 billion yen as sales plunged 63.1 percent to 728.68 billion yen.
"We faced a never-before-seen drop in demand for both domestic and international flights due to the pandemic," ANA President and CEO Shinya Katanozaka told an online press briefing.
Domestic passengers fell 70.5 percent to 12.66 million, while passengers on international flights dived 95.5 percent to 427,392 due to travel restrictions, according to ANA.
As vaccinations progress, demand for travel is expected to return, Katanozaka said, vowing to achieve a return to profitability in the current business year.
Domestic travel is expected to recover faster than international but Japan is struggling to curb coronavirus cases with a third COVID-19 state of emergency declared for populous areas including Tokyo and Osaka until after the nation's Golden Week holidays end in early May.