Japan’s largest airline ANA on Monday reported quarterly net profit for the first time in two and a half years as the sector recovers from the financial pains of the pandemic.
The easing of Covid-19 measures in Japan and various other countries increased demand for domestic and international travel, ANA said, with a cheaper yen also providing a boost.
From April to June, the company posted net income of one billion yen ($7.6 million), after nine consecutive quarters of losses beginning in January to March 2020, as the virus wreaked havoc around the world.
However, from April to June 2019, when Japanese tourism was booming, it was still only around a tenth of the airline’s net profit.
Although fuel prices and other expenses were higher, “disciplined cost management” and efforts to contain fixed costs resulted in a “significant improvement” in profitability, ANA said.
Revenue for the first quarter rose 76 percent year-on-year to 350 billion yen, but the airline still suffered an operating loss and maintained its annual net profit forecast of 21 billion yen.
Rival Japan Airlines on Monday posted a net loss of 19.56 billion yen for April-June, but reiterated to ANA that demand for flights was recovering as pandemic restrictions eased.
“There are still various uncertain external environments, including the situation between Russia and Ukraine or the increase in prices of raw materials, including fuel,” JAL warned.
The airline kept its full-year net income estimate at 45 billion yen, unchanged from the previous quarter.
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