Japan's "big three" carriers have reported sharply better financial results for the year ended 31 March 2001 but are being cautious on future earnings amid slowing economic conditions at home and in the USA.
All Nippon Airways (ANA), Japan Airlines (JAL) and Japan Air System (JAS) have all reported higher 12-month profits, claiming that cost-cutting efforts are paying off. The three have restructured in the face of new domestic competition from start-up carriers and tough economic conditions.
All warn, however, that slowing economic conditions, mainly in the USA, have already cut profitability and they are generally forecasting flat or reduced profits this year.
ANA says it recorded its highest-ever full-year consolidated operating profit in 2000-01 - ¥82.24 billion ($682 million), up 160% on the previous year's ¥31.55 billion. Net profit was ¥40.28 billion, compared with last year's net loss of ¥15.2 billion.
JAS saw net profit nearly doubling, up to ¥2.24 billion. Group operating profit increased 85% to ¥17.74 billion for the year from ¥9.58 billion last year.
JAL had earlier reported a 108% consolidated net profit rise during the fiscal year while operating profit was up 75%. It has forecast a 39% drop in net profit for this year due to tough economic conditions.
Source: Flight International
