Monday, August 15, 2022
HomeTechnologyJapan's top airline ANA reports first net profit in 10 quarters

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.

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 net profit 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 profit in April-June 2019, when Japanese tourism was booming.

Although fuel prices 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 operating loss 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.


Japan’s ANA net profit dives 75% as virus hits air travel


© 2022 AFP

Citation:
Japan’s top airline ANA reports first net profit in 10 quarters (2022, August 1)
retrieved 1 August 2022
from https://techxplore.com/news/2022-08-japan-airline-ana-net-profit.html

This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.



Sourced:

Website: techxplore.com

Source Link

RELATED ARTICLES
- Advertisment -

Most Popular

[td_block_social_counter]
- Advertisment -

INTERESTING ARTICLES

- Advertisment -

LATEST ARTICLES

- Advertisment -