News
ANA tipped to post annual loss, announce fleet, network changes
October 23rd 2020
Market watchers expect All Nippon Airways (ANA) parent, ANA HOLDINGS INC. to announce a hefty loss, the retirement of scores of aircraft and new measures to shore up its position from the pandemic in its financial results release next week. Read More »
The company has not provided earnings guidance, but market analysts have forecast a loss in the vicinity of 500 billion yen (US$4.8 billion) for its fiscal 2021 financial year, or 12 months to March 31, 2021. ANA HOLDINGS INC. reported a net profit of 27.7 billion yen in the 12 months to March 31, 2020.
The financial report for the six months to September 30 is due to be released on October 27. For the first quarter, or three months to June 30, the parent company announced a net loss of 108.8 billion yen, down from a net profit of 11.4 billion yen for the corresponding quarter in 2019.
Notwithstanding the recent agreements Japan has signed with a number of countries to establish bilateral travel, international borders remain largely closed.
ANA's international passenger numbers were down 96.3% in the five months to August 2020, at 162,418, compared with the same month last year.
There has been a pickup in domestic travel from an easing of travel restrictions in Japan, but ANA's domestic passengers were down 82.2%, at 3.4 million, in the April to August period.
The lack of demand is expected to prompt a review of the ANA fleet that could involve retirement of up to 30 wide-body aircraft, various news outlets have reported, citing sources familiar with the matter but who were not authorised to speak publicly.
At June 30, ANA had 268 aircraft: 55 777 family aircraft, 73 787 family aircraft and 24 767-300/300ER jets, not including freighters. The company's LCC, Peach, has 32 A320 family aircraft.
Earlier this month, Japanese media reported ANA was set to secure 400 billion yen (US$3.8 billion) in additional liquidity through a subordinated loan facility with five banks – Sumitomo Mitsui Banking Corp, the government-backed Development Bank of Japan, Mizuho Bank, MUFG Bank and Sumitomo Mitsui Trust Bank.
In September, Nikkei wrote the airline company was considering raising 200 billion yen through a public share offer. There have been talks with union groups to negotiate lower pay and conditions to cut costs and strong rumours changes to the company’s frequent flyer program, ANA Mileage Club, will allow members use points to redeem flights on Peach.
