Business / Corporate

ANA slashes 2019 earnings outlook due to pandemic

Kyodo

ANA Holdings Inc. is cutting its earnings estimate for the 2019 business year as the coronavirus pandemic decimated demand for air travel.

The operator of All Nippon Airways Co. slashed its group net profit forecast for the business year to ¥27 billion ($250 million), down 71.3 percent from its earlier estimate of ¥94 billion.

The company now expects its operating profit to sink 57.1 percent to ¥60 billion on sales of ¥1.97 trillion, down 5.7 percent, due to a substantial drop in demand in March following travel restrictions in and outside of Japan due to the pandemic.

Over the next year, 6,400 of the airline’s full-time cabin attendants will take three to five days a month of partially paid leave due to flight cancellations.

ANA has cut about 90 percent of its international flights between this Saturday and May 15, while rival Japan Airlines Co. has announced a more than 90 percent reduction in such flights in May due to the travel restrictions.

Your news needs your support

Since the early stages of the COVID-19 crisis, The Japan Times has been providing free access to crucial news on the impact of the novel coronavirus as well as practical information about how to cope with the pandemic. Please consider subscribing today so we can continue offering you up-to-date, in-depth news about Japan.

Coronavirus banner