NICHOLAS IONIDES / SINGAPORE
Japan's three major carriers have posted losses or substantially reduced profits for the year ended 31 March, but expect to return to the black this year as market conditions improve.
All Nippon Airways (ANA) has unveiled a 72% plunge in group operating profit and a slide into net losses. Operating profit dropped to ¥23 billion ($183 million) from the previous year's ¥82.2 billion. The carrier suffered a pre-tax loss of ¥7.2 billion, compared with a pre-tax gain the previous year of ¥63.3 billion, and a net loss of ¥9.45 billion, compared with a net gain the previous year of ¥40.3 billion.
Operating revenue fell 6% to ¥1.2 trillion as operating expenses were reduced 1% to ¥923.4 billion.
ANA expects conditions to improve, however, as it continues restructuring to allow it to compete with Japan Airlines (JAL) and Japan Air System (JAS), which plan to merge. It forecasts group operating revenue of ¥1.3 trillion for the year and a net profit of ¥2 billion.
JAL earlier reported an operating loss for the year of ¥11.9 billion, compared with an operating profit last year of ¥78.6 billion. Net loss totalled ¥36.7 billion, but it expects to return to profitability this year with a net gain of ¥23 billion (Flight International, 14-20 May).
Meanwhile, JAS has reported a 58% drop in net profit for the year. The number three carrier saw net profit fall to ¥927 million from the previous year's ¥2.24 billion.
Pre-tax profit was down 53%, to ¥3.5 billion from ¥7.5 billion, while operating profit fell 39%, to ¥10.9 billion from ¥17.7 billion. Group sales increased slightly to ¥420.8 billion from ¥418.4 billion.
Source: Flight International
