Japan's ANA forecasts $880m annual net loss

Tokyo (AFP) – Japanese airline ANA on Friday forecast an annual net loss and said it would eliminate 9,000 jobs, with travel demand slow to recover as the pandemic drags on.


The firm said it now expects to see a net loss of 100 billion yen ($880 million) for the year to March, instead of an earlier projection for a profit of 3.5 billion yen.

"While international cargo demand was strong, reduced passenger demand continued globally during the first half of the fiscal year due to a resurgence of Covid-19 cases and the spread of new variants," it said in a statement.

"Domestic passenger demand has now started to show signs of recovery in correlation with the decline in reported Covid-19 cases (but) a full-fledged recovery of demand is delayed compared to initial expectations."

The firm plans to reduce its total workforce by 9,000 to around 29,000 through a hiring freeze and natural attrition by March 2026.

"By becoming a smaller company, we will make it through the tunnel of the pandemic and be born again as a stronger group," AHA Holdings president Shinya Katanozaka said.

The company projected annual sales of 1.06 trillion yen, down from an earlier projection of 1.38 trillion yen.

For the six months to September, ANA Holdings logged a net loss of 98.8 billion yen.