ANA projects return to black this financial year

All Nippon Airways cut losses to 51.1 billion yen (£334 million) in the three months to June 30.

This was the lowest level of loss reported by the Japanese airline group since the final quarter of 2019.

ANA remains committed to returning to profit in the current financial year, “backed by recovering travel demand, strong cargo business, continued cost cutting measures and the growth of non-aviation businesses”.

Despite the Japanese economy still being severely affected by Covid-19, corporate activities and capital investment continues to rebound.

“However, lower personal consumption figures indicate lingering weaknesses as well,” ANA added.

“There have been signs of recovery in the airline industry, especially increased demand within the US and European countries where an increase in vaccination rates has progressed.

“However, hurdles still remain on many international routes due to restrictions on entry and travel in a number of countries.”

Operating revenues for the three months to June 20 rose from the previous year to 198.9 billion yen (£1.3 billion).

Chief financial officer Ichiro Fukuzawa said: “Our performance this quarter has validated the strategic approach adopted by the entire ANA Group in the face of numerous and complex challenges that have affected the entire airline industry.

“Though Covid-19 and accompanying immigration restrictions have dampened demand for international travel, this turnaround was made possible by the impressive growth of our cargo business, rebounding travel demand, and targeted cost-cutting measures that have led to the greatest improvement in quarterly financial results since Covid-19 started impacting our business in the fourth quarter of FY2019.”