ANA's FY 2019 group net profit hammered by COVID-19

Xinhua News,TOKYO
2020-04-28 22:38

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TOKYO, April 28 (Xinhua) -- Japan's largest airline ANA Holdings said Tuesday that its group net profit in the business year plummeted from a year earlier due to the COVID-19 pandemic, which forced the carrier to cancel the majority of its international routes and numerous domestic flights.

In the business year ending in March, ANA said its group net profit tumbled 75.0 percent from a year earlier to 27.66 billion yen (259.06 million U.S. dollars).

The Tokyo-based carrier said its operating profit for the business year nosedived 63.2 percent to 60.81 billion yen (569.91 million U.S. dollars), based on sales of 1.97 trillion yen (18.46 billion U.S. dollars), a drop of 4.1 percent.

Japan's largest airline by revenue, however, maintained its finances were on a steady footing.

"We have no problem in our financing for the time being," Ichiro Fukuzawa, chief financial officer of ANA Holdings, said, with reference to credit lines secured from banks.

Amid slumping patronage, ANA has secured loans and credit lines from banks to the tune of almost 950 billion yen (8.90 billion U.S. dollars).

ANA also said it had booked its biggest quarterly group net loss in the January to March period of 58.7 billion yen (549.96 million U.S. dollars) amid the pandemic and slumping patronage.

For the current business year starting in April, ANA did not provide an earnings forecast owing to an unclear outlook while global travel restrictions are in place, as the carrier slashed 90 percent of international flights and 70 percent of domestic ones in April, compared to its initial cutback.

"The number of international and domestic passengers started sharply falling after the World Health Organization in March declared the spread of the coronavirus as a pandemic," said Fukuzawa.

"However, we cannot expect demand for flights to rapidly increase even after the end of the virus spread, as the complete containment could take more time," he said, while expressing hope the pandemic would "fade out" by August and demand for travel return.
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