ANA group narrows its losses in Q1

This story is sourced from Pro
See more Pro news »

All Nippoin Airways (ANA) group narrowed its losses in the fiscal first quarter thanks to higher revenue and lower operating expenses.

In the three months ending 30 June, the group had a net income loss of ¥5.2 billion ($60 million) compared to a net income loss of ¥29.2 billion the corresponding period last year, says ANA group.

Operating revenue rose 37% to ¥306.8 billion from ¥269.8 billion, it says, adding that operating expenses fell 8% to ¥303.8 billion from ¥312.3 billion.

A break-down of the results shows revenue from international air transportation rose 20% to ¥64.1 billion and domestic air transportation rose 5% to ¥143.5 billion.

In real terms, the number of international passengers rose 26% to 1.22 million and number of domestic passengers rose 6% to 9.6 million.

"While the Japanese economy showed steady recovery during the three month period under review, deflationary effects continued to exert downward pressure [so] taking an optimistic view remains difficult", says ANA executive VP of finance Tomohiro Hidema.

"Concerns about a downward economic swing, primarily in Europe, along with moves by our competitors, mean that business conditions going forward will remain uncertain," he says. ANA's competitor Japan Airlines is in bankruptcy protection and appears set to get a government bail-out.

Tomohiro says revenue was higher because ANA has captured more business and leisure travellers, and traffic on international and domestic routes has been recovering gradually.

He also says ANA worked to reduce costs, including labour costs.

ANA is looking to expand later in the year thanks to the opening of the fourth runway, at Tokyo Haneda Airport, in October, he adds.