All Nippon Airways Co. said Thursday that it now expects annual group revenue from international passenger flights to fall 42 billion yen below the amount forecast in its original fiscal 2003 business plan.
In April, the firm estimated a 26 billion yen shortfall due to the effects of the Iraq war and the outbreak of severe acute respiratory syndrome.
But the airline now believes the impact of SARS and the war during the April-June term was more severe.
ANA specifically cited a sharp drop in the number of passengers to Taiwan and other Asian regions due to SARS in these areas.
While ANA saw the number of passengers on all its international flights drop 35 percent to some 566,000 during the first quarter, passenger figures for its Taipei route suffered a decline of 67 percent, while those for China dropped 60 percent from the previous year.
“We had expected international flights to return to normal by the end of the first half of the current business year, but now we think the situation will return to normal by year’s end,” said Tomohiro Hidema, a senior vice president in charge of ANA’s corporate finance. “But the worst part is over since it hit bottom in May.”
On the same day, ANA also reported group revenue of 259.6 billion yen during the first quarter, along with an operating loss of 28.65 billion yen.
Moreover, it reported a pretax loss of 27.3 billion yen and a net loss of 18.3 billion yen.
This marks the first time for ANA to disclose quarterly business results.
Sales from international flights reached 43.5 billion yen, down 11.7 billion yen from the previous year. while revenue from domestic flights came to 147.8 billion yen, down 8.9 billion yen.
With an 11 percent increase in normal domestic airfares starting this month and a prospective shift of passengers from international to domestic flights, ANA is aiming to increase domestic sales during the second quarter.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.