ANA HOLDINGS INC. the parent company of Japan’s All Nippon Airways (ANA), today reported a net loss of 188.4 billion yen (US$1.8 billion) for the six months to September 30, 2020, slumping into the red from a net profit of 56.7 billion yen in the same months last year.Read More » Operating revenue fell 72%, to 291.8 billion yen, from 1.0559 trillion yen previously, the company said in a regulatory filing. “Compared with the first quarter, the second quarter has recovered significantly, which proves we have already bottomed out and are seeing a dramatic recovery,” ANA HOLDINGS executive vice president and chief financial officer, Ichiro Fukuzawa, said.
The ANA parent will undertake "structural business reforms" to address how travel is changing and build resilience to any future global risks. This included plans to establish a third airline alongside the existing ANA and Peach Aviation operations that will focus on low-cost, medium-haul flights to destinations in Southeast Asia and Oceania. The new airline is planned to begin service in 2022 with 787s configured with 300 seats, ANA HOLDINGS said.
The company aims to reduce costs by 543 billion yen (US$5.2 billion) in the 12 months to March 31, 2021, having already cut 333 billion yen in expenditure from the business in its first half by tight capacity control, reduced pay and bonuses for staff and continued temporary leave programs. The company will centralise procurement, reduce office space rents, review unprofitable businesses and increase cooperation between maintenance units. It also has secured a subordinated 400 billion yen loan to boost liquidity.
ANA will withdraw 35 aircraft from its fleet in the current financial year, from a previously planned seven airplanes, of which 22 will 777 family aircraft. New aircraft to arrive in the fleet have been cut by three to 13, taking the total reduction in the carrier’s fleet to 31 planes compared with a previous plan of a nine aircraft increase. Subsidiary Peach will have its fleet reduced by two aircraft.
In other Japan aviation news, local media reported Japan Airlines (JAL) was expected to post an operating loss of about 85 billion yen (US$811 million) for the three months to September 30, 2020 when it publishes its latest quarterly results on Friday. The airline is forecast to announce a full-year net loss of about 230 billion yen.
AirAsia Group said yesterday it reduced capacity at its Malaysian unit in October due to renewed restrictions, known as the conditional movement control order, brought in as the country battled a rise in COVID-19 infections. The company said it was "striving to recover to 60% of its pre-COVID domestic capacity” by the fourth quarter of the year, a more conservative estimate than a previously forecast 70%-75%. Traffic statistics for the three months to September 30 showed AirAsia Malaysia carried 1.8 million passengers in the quarter, down 80% from 8.8 million a year earlier. Capacity for the quarter declined 81% and demand was 84% lower. Passenger load factor fell 15 percentage points, to 68%, AirAsia said.
At AirAsia affiliates, passengers were down 96% in Indonesia, at 73,905, 97% lower in the Philippines, at 67,880, less 65% in Thailand at 1.9 million and 25% of previous figures in India, at 590,873. Numbers for AirAsia Japan, which ceased operations early this month, were not disclosed by the group. The group said passengers carried improved in September compared with July, which highlighted a "strong upward rebound trend for air travel demand across key markets for the group".
Myanmar Airways International (MAI) has taken delivery of its first Embraer E190 aircraft. The regional jet, registration M-ABNH, was greeted with a water cannon salute shortly after touching down at Yangon International Airport at about 1035 local time yesterday, the airline said on social media. The E190 joins MAI's fleet of three A319s and one A320. "The airline will continue its focus on network expansion and launch more exciting routes in line with its strategic plan to promote Myanmar as a regional destination," MAI said. The airline signed an agreement with CDB Aviation to lease two E190s at the Singapore Airshow last February.
