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ANA blames ¥6.6 billion quarterly loss on yen, 787

AFP-JIJI, JIJI

All Nippon Airways said Tuesday it swung into a loss for the April-June quarter as fuel costs soared and problems with its fleet of Boeing Dreamliners weighed on results.

ANA lost ¥6.6 billion, reversing a small profit from a year earlier, while revenue climbed 4.4 percent to ¥358.3 billion.

The airline cited a spike in fuel costs as a sharply weaker yen sent its operating expenses soaring.

“The primary reason for the increase in operating expenses was a rise in fuel costs due to the weakening of the yen,” it said in a statement. “Operating revenues were also held back by the suspension of Boeing 787 services for part of the period.”

But the carrier kept its full-year profit forecast unchanged at ¥45 billion.

ANA and rival Japan Airlines, which was to report its quarterly results Wednesday, were sideswiped by the four-month grounding of Boeing’s new 787 earlier this year.

ANA and JAL operate about half the Dreamliners currently in service and had to cancel hundreds of flights in the wake of the crisis, which saw the fuel-efficient plane probed by regulators over battery problems. In the latest such case, ANA had to cancel a 787 flight from Okayama Airport to Tokyo on Monday morning because of a potential computer system glitch.

Although rising competition in the domestic market saw revenue decline 1.3 percent in the latest quarter, ANA’s international business booked a 7.5 percent rise in sales on the back of steady demand for flights to Europe and North America, it said.

ANA said its China business was still suffering from the Senkaku Islands dispute.