ANA Logs Net Loss Tempered By Strong Cargo Demand

ANA Holdings Inc. reported Friday a net loss of 51.16 billion yen ($470 million) in the April-June quarter as the coronavirus pandemic continued to dent travel demand, but cost-cutting and a robust cargo business helped the airline to limit the red ink, Mainichi Japan reported.

Photo Insert: Apart from continuing to reel from the effects of the pandemic, companies like ANA are simultaneously adjusting to the global push for renewables

The parent of All Nippon Airways Co. saw its net loss in the first quarter of fiscal 2021 nearly halve from a record quarterly net loss of 108.82 billion yen a year earlier.

It incurred an operating loss of 64.61 billion yen, shrinking from a year-earlier loss of 159.07 billion yen, while sales jumped 63.6 percent from a year earlier to 198.91 billion yen.

ANA maintained its earnings forecasts for the current fiscal year through March. Following a record 404.62 billion yen net loss in the previous business year, the major Japanese airline expects a turnaround with a 3.5 billion yen net profit.

Air travel demand remains below pre-pandemic levels but has been picking up with some positive developments such as the launch of so-called "vaccine passports" in Japan for international travelers to prove that holders are fully vaccinated against COVID-19.

The cargo business was a bright spot for ANA, capturing pandemic-triggered demand for goods delivery.

Cost-cutting efforts have progressed through the reduction of its fleet and canceling flights, the airline said.

"We are still in a severe situation for now but reservations (for flights) are on a rising trend from this summer," Chief Financial Officer Ichiro Fukuzawa said at a press briefing.

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