All Nippon Airways turned losses into profit in Q2, and Japan Airlines’ losses narrowed
China Civil Aviation Network correspondent Wang Yingbin compiled and reported: Statistics recently released by All Nippon Airways Holdings (HD) and Japan Airlines (JAL) show that in the second quarter of 2022 (April to June), All Nippon Airways turned losses into profits, while Japan Airlines’ losses narrowed. . Passenger demand has picked up amid the gradual easing of COVID-19-related restrictions. But both companies are cautious regarding forecasts for the current fiscal year to March 2023. Affected by the surge in the seventh wave of infections, the recovery of domestic passenger traffic has slowed down, and the outlook remains to be seen.
ANA Holdings finally made a profit of 1 billion yen in the quarter (a loss of 51.1 billion yen in the same period last fiscal year), the first quarterly profit in three years. Sales were 350.4 billion yen, a year-on-year increase of 76.2%. Passenger demand on both domestic and international routes increased significantly, and cargo business also performed well. The group’s chief financial officer (CFO) Kohiro Nakabori said at a news conference that the company is off to a good start in meeting its full-year profit forecast.
However, the impact of the seventh wave of the epidemic has cast a shadow on operations centered on domestic routes. The chief financial officer of Nakahori Kohiro pointed out that the passenger demand from July to September accounted for 80% of the ANA brand, and the passenger demand of its low-cost airline Peach Airlines, combined with the passenger demand of its low-cost airline Peach Airlines, can roughly return to the pre-epidemic level by the end of September. But as the epidemic rebounded, passenger demand growth slowed slightly. Passenger traffic on domestic routes over the same period is expected to be lower than expected at the beginning of the year. Passenger traffic on international routes will be higher than expected.
JAL’s final loss for the quarter fell to 19.5 billion yen (compared to a loss of 57.9 billion yen a year earlier). Thanks to a pickup in passenger demand, sales reached 268.8 billion yen, doubling from the same period last year. Earnings before interest and taxes (EBIT) were 20 billion yen higher than planned at the beginning of the year, said Hideki Kikuyama, a senior executive at the company. Passenger revenue on domestic routes fell by JPY 10 billion, while cargo revenue increased by JPY 10 billion and passenger revenue on international routes increased by JPY 20 billion.
Senior executive officer Kikuyama pointed out that the relaxation of entry restrictions is conducive to the recovery of passenger demand in Japan. The impact of the seventh wave of the epidemic on international routes is “less obvious”. The growth rate of passenger demand on domestic routes has slowed down. From July to September, domestic passenger traffic will drop to 80-90% from the previously expected recovery to 95% before the epidemic.
For the fiscal year ending in March 2023, ANA forecasts a final profit of 21 billion yen, slightly higher than the IBES analyst average forecast of 20 billion yen.
Japan Airlines forecast an eventual profit of 45 billion yen, higher than the IBES analyst average of 25.5 billion yen, but decided to forgo an interim dividend. (compiled from Archyde.com website 8.1)
