Disaster Aftermath Pushes ANA to 8.4 Billion Yen June Quarter Loss
Aug. 01, 2011
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Still reeling from the aftereffects of March's earthquake, tsunami and nuclear crisis in Japan, All Nippon Airways incurred an 8.4 billion yen (US$107.9 million) net loss for its fiscal first quarter ended June 30, widened from a 5.2 billion yen net deficit in the prior-year period.
"The losses during the period reflect the severe disruption caused by the Great East Japan earthquake in March, which resulted in a significant decline in passenger numbers," ANA stated Friday. "Despite the steady recovery of the Japanese economy during the period, the short-term outlook remains unclear due to factors including restrictions on electric power distribution, the nuclear power shutdown and a steep rise in crude oil prices."
There are some good signs, though. On the domestic front, "business passenger numbers began to recover after bottoming out in April, with the level of demand in June almost returning to that of the previous year," the airline said. "Leisure traffic also showed signs of improvement after April."
Regarding long-haul flying, the company noted, "In the month immediately following the earthquake, there was a marked decline in international passenger numbers. However, traffic levels began to rebound around the middle of April, with business demand showing early recovery. However, recovery in leisure demand is slow; above all, with in-bound passenger numbers significantly down."
ANA's fiscal first-quarter operating revenue declined 0.6% year-over-year to 305 billion yen while expenses heightened 3.1% to 313.1 billion yen, producing an operating loss of 8.1 billion yen, reversed from a 2.9 billion yen operating profit in the 2010 June quarter.
Looking ahead, ANA said it does not "expect demand to return to pre-earthquake levels until the end of this fiscal year [March 31, 2012]."
Photograph: All Nippon Airways 777-300ER at Tokyo Narita. Photo by Rob Finlayson