Japan’s Skymark Airlines generated an operating profit of Y4.6 billion ($29 million) in its 2023 financial year, up 35.2% from a year earlier.

Revenue for the 12 months ended 31 March grew 22.9% to Y104 billion, the carrier says.

Skymark 737-800

Recovery of domstic economy has helped to boost demand, carrier says

The recognition of gains on foreign currency denominated assets helped ordinary profits to double to Y7 billion. In Japan, ordinary profit is calculated by adjusting operating profits with non-operating income and expenses.

The carrier says that during the year the Japanese economy showed signs of recovery in the wake of the coronavirus pandemic.

“Strong passenger demand is expected to continue, due to the shift of travellers to domestic travel due to the weak yen and an increase in tourists visiting Japan,” says the carrier.

Still, the carrier says it faces a challenging environment. The weak yen has raised costs, alongside rising energy prices and global inflation.

These factors helped push operating expenses up 23.3% year on year to Y93 billion.

Skymark says it carried 7.9 million passengers in the period, up 13.2% from a year earlier.

The carrier adds that its prospects are good, especially given its slots at Tokyo’s Haneda airport, which positions it well to benefit from leisure and in-bound demand.

As of 31 March, Skymark’s cash and cash equivalents stood at Y22.3 billion, down from Y27 billion a year earlier.