Japan's All Nippon Airways (ANA) expects to report a net loss of ¥65 billion ($718 million) in its current fiscal year ending 31 March, but aims to return to the black next year.
The Star Alliance carrier hopes to post a net profit of ¥5 billion in its next fiscal year ending 31 March 2011, and a ¥37 billion net profit in the following fiscal year ending 31 March 2012.
In April 2009, ANA reported its first full-year net loss in six years, posting a ¥4.2 billion loss. In its current fiscal year, it has already chalked up a net loss of ¥35 billion for the first three fiscal quarters ending 31 December 2009.
In its new fiscal year beginning 1 April, ANA says it plans to respond to the global economic downturn by consolidating its operations and improving its cost structure and productivity.
ANA will consolidate the various airlines in its group to form a three-company system by 31 March 2012.
Its low-cost subsidiary Air Japan will be merged with cargo carrier ANA & JP Express by July, says ANA.
Feeder carrier Air Nippon Network, low-cost airline Air Next and regional subsidiary Air Central will be combined into a single company by October, adds the carrier.
ANA will cut costs by reducing its workforce by 20%, or 1,000 staff, in its new fiscal year starting 1 April.
It will expand its network from Tokyo-Narita and Tokyo-Haneda, which will open to international scheduled flights in October. Both airports will serve as 'dual hubs' for the airline," says ANA.
It also plans to expand its market share by increasing codesharing operations with its partner carriers, and start new domestic routes according to demand, it adds.