ANA concerned Trump’s policies may slow global growth

Bloomberg

ANA Holdings Inc., owner of Japan’s biggest airline, said it’s concerned the policies of U.S. President Donald Trump may slow global growth, which in turn affects airline passenger traffic.

“We have to consider the effect on logistics and movements if trade frictions arise as in the past,” Yuji Hirako, an executive vice president, told reporters in Tokyo Friday. “The possibility of a slowdown in global growth is emerging. We need to spend time observing Trump’s government and policies.”

Trump told business leaders this week he would impose a “very major” border tax on companies that move jobs outside the U.S. He also made good on his campaign pledge to save American jobs by pulling the world’s biggest economy out of the long-planned Trans-Pacific Partnership, a free trade pact that would’ve covered 12 nations and about 40 percent of global gross domestic product. U.S. intelligence officials briefing Trump have painted a dreary next half-decade that will see waning American power amid slow growth.

The top airline of the world’s third-largest economy and its key hub at Haneda in Tokyo — the world’s fourth-busiest airport in 2015 — are significantly exposed to the swings in the global economy.

ANA, which owns carrier All Nippon Airways, on Friday reiterated a forecast for an almost 3 percent drop in sales this fiscal year due to a reduction in fuel surcharges.

The company is seeking ¥25 billion in non-fuel cost reductions this fiscal year to help offset a dip in sales due to the removal of the surcharge in April, according to the carrier. ANA is on line to meet the savings target, Hirako told reporters in Tokyo Friday.

A record 24 million visitors came to Japan last year, a 22 percent jump from a year earlier, with China making up the largest group with 6.4 million, according to figures from the Japan National Tourism Organization. Haneda is one of the gateways to Japan.