ANA Holdings reported operating income of ¥120 billion ($897 million) for the full year through March, its first annual profit since the 12 months that ended in March 2020 thanks to a rebound in travel demand.

Japan’s biggest airline also gave a better-than-expected forecast for the coming year, saying operating profit should rise to ¥140 billion, compared with analysts’ estimates of ¥136 billion.

Travel demand from North America, Oceania and most of Asia has improved since Japan started easing COVID-related restrictions in September, but the recovery from Europe and China still lags, Chief Executive Officer Koji Shibata said at a briefing in Tokyo on Thursday.