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All Nippon Airways posts $391M loss in April-Dec

All Nippon Airways posts $391M loss in April-Dec

All Nippon Airways Co. posted a deep loss for the nine months through December, unable to offset a major passenger slump with cost cuts.
Japan's second biggest carrier said Friday it lost 35.2 billion yen ($391 million) during the period, compared with a 9.4 billion yen profit a year earlier. Sales fell 17 percent to 923.8 billion yen, leading to an operating loss of 37.8 billion yen.
"The business downturn which has persisted since the second half of the last fiscal year has been continuing, and passenger demand is taking longer than expected to recovery," ANA said in its earnings report.
The Tokyo-based company blamed the global economic downturn and swine flu fears for sluggish traffic. To make up for lower business demand, it wooed leisure customers with discount fares, charter service and extra flights during busy periods.
As a result, the number of passengers rose, but revenue per passenger tumbled, ANA said.
It carried 3.4 million international travelers in April-December, up 0.2 percent from a year earlier. The number of domestic passengers fell 9 percent to 30.2 million passengers.
The airline left its annual earnings forecasts unchanged. It continues to expect a 28 billion yen ($311 million) loss on sales of 1.26 trillion yen.
In its business plan for next fiscal year, ANA says it will expand in 2010 with new landing slots and fuel-efficient aircraft. It also stands to benefit from the troubles of rival Japan Airlines Corp., which filed for bankruptcy protection this month with $25.6 billion in debt.
ANA will begin new a service from Narita International Airport to Munich, Germany in July, and increase the number of flights from Narita to several Asian cities. ANA will begin flying to Taipei 14 times a week out of Tokyo's Haneda Airport. It also plans more flights from Haneda to Seoul, Beijing, Shanghai.
It is set to receive the first Boeing 787s later this year.


Updated : 2021-06-24 18:06 GMT+08:00