Japan's All Nippon Airways (ANA) has widened its losses in its fiscal year ending 31 March, as the airline continues to feel the crippling effects of the global economic downturn.
It posted a full-year net loss of ¥57.3 billion, which is ¥53.1 billion more than the ¥4.2 billion net loss it reported a year ago.
Operating revenues fell 12% to ¥1.2 trillion yen, while operating expenses fell 7% to ¥1.3 trillion, says ANA.
It posted an operating loss of ¥54.2 billion yen, sliding from an operating profit of ¥7.5 billion a year ago.
The global recession and the H1N1 pandemic created "an extremely harsh business environment at a level of severity we have never seen before," says ANA executive VP Tomohiro Hidema.
"While we have worked to implement a wide variety of measures to stimulate demand on both our domestic and international routes and have succeeded in creating some demand in the leisure market, recovery for business travel and in unit prices remains slow, causing revenues to fall far below forecasted levels."
In terms of passenger traffic, international RPKs grew 4% in the fiscal year while capacity, as measured by ASKs, fell 4%. International passenger numbers rose 5% to 4.7 million. ANA's international passenger load factor grew 6.3 percentage points to 75.7%.
On the domestic front, RPKs fell 6% and ASKs decreased 4%. Domestic passenger numbers fell 7% to 39.9 million passengers, and the domestic passenger load factor fell 1.5 percentage points to 62%.
In terms of cargo, the total amount of international freight handled by ANA grew 19% to 422,000t and domestic freight fell 3% to 458,000t.
Looking ahead, ANA expects recovery to continue in its new fiscal year and beyond.
"However, with the deflationary trend in prices likely to continue, our current outlook of the environment surrounding our business is cautiously optimistic," it adds.
For its current fiscal year ending 31 March 2011, ANA forecasts a return to the black with a net profit of ¥5 billion and operating revenues of ¥1.3 trillion.