Japan's top airline ANA reports first net profit in 10 quarters

The relaxation of virus measures in Japan and many other countries increased demand for domestic and international travel
The relaxation of virus measures in Japan and many other countries increased demand for domestic and international travel.

Japan's biggest airline ANA on Monday posted a quarterly net profit for the first time in two and a half years as the sector recovers from the financial pain of the pandemic.

The relaxation of COVID-19 measures in Japan and various other countries increased demand for domestic and international travel, ANA said, with a cheaper yen also providing a boost.

In April-June, the company logged a of one billion yen ($7.6 million), following nine consecutive quarters of losses beginning in January-March 2020, when the virus started to cause havoc worldwide.

However, it was still only around a tenth of the airline's net in April-June 2019, when Japanese tourism was booming.

Although and other expenses were higher, "disciplined cost management" and efforts to rein in fixed costs led to a "significant improvement" in profitability, ANA said.

Revenue for the first quarter was up 76 percent on-year at 350 billion yen, but the airline still suffered an and maintained its annual net profit forecast of 21 billion yen.

Rival Japan Airlines on Monday logged a net loss of 19.56 billion yen for April-June, but echoed ANA in saying demand for flights was recovering as pandemic restrictions eased.

"There still exists various uncertain external environments including the Russia-Ukraine situation or price hike of raw materials including fuel," JAL warned.

The carrier kept its full-year net profit estimate at 45 billion yen, unchanged from the previous quarter.


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© 2022 AFP

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