You are here: Home » International » News » Companies
Business Standard

Hit by pandemic, Japan's ANA to suffer $4.8 bn net loss this year: Report

As part of its cost-saving efforts, the airline plans to cut its fleet of aircraft by about 25, said the source, who declined to be named due to the sensitivity of the matter

Topics
Japan | airlines | Global airline industry

Reuters  |  TOKYO 

flight, plane, airline, aircraft
Photo: Shutterstock

Japanese airline operator ANA Holdings is expected to suffer a net loss of around 500 billion yen ($4.8 billion) for the fiscal year to March after the COVID-19 pandemic battered travel demand, a source with direct knowledge said on Wednesday.

Forecast to book its biggest loss, Japan's largest airline has turned to billions of dollars in loans and a government tourism campaign to weather the slump in air travel, and could take advantage of accounting rules to avoid aircraft writedowns.

As part of its cost-saving efforts, the airline plans to cut its fleet of aircraft by about 25, said the source, who declined to be named due to the sensitivity of the matter.

A company spokeswoman told Reuters that nothing had been determined.

Global have taken a hit from the plunge in travel caused by the coronavirus, scrambling to cut costs as losses mount.

Hong Kong's Cathay Pacific Airways Ltd said on Wednesday it would slash 5,900 jobs and end its regional Cathay Dragon brand.

ANA is also slashing personnel costs through redundancies and paycuts, and along with rival Co Ltd (JAL) is getting government help including a waiver on airport landing fees.

Tokyo sees the carriers as crucial to keeping Japan, a 3,000-kilometre archipelago stretching along the edge of East Asia, connected.

The airline also plans to reduce its routes, hoping to survive through the pandemic with a large domestic market.

It plans to suspend a large volume of flights at three airports in Japan, with about an 80% cutback at Narita airport, according to an email from the company president to employees seen by Reuters.

The company is scheduled to release its earnings results on October 27.

The Kyodo news agency earlier reported that ANA plans to cut its fleet of wide-body aircraft by half as part of restructuring plans expected to be disclosed later this month.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 21 2020. 20:20 IST
RECOMMENDED FOR YOU
.