Published on : Saturday, January 31, 2015
It has been a mixed nine-month report for Japan’s two biggest airlines. The All Nippon Airways (ANA), saw a 57 per cent rise in net profits with an increase in its international business and Japan Airline(JAL), its rival saw a continuous dip in its profit for the same period.
The reason for the dip had been attributed to rising fuel prices but now with a recent drop in oil prices and yen price JAL has raised a full-year earnings forecast.
ANA said its April-December net profit more than doubled to 52.36 billion yen from a year ago, as an expansion at Tokyo’s downtown Haneda airport increased landing slots for international flights.
Sales in the latest period rose 9.1 percent to 1.3 trillion yen, the company said. Revenue from international passenger flights jumped 19.1 percent on-year, ANA said, while revenue in its domestic passenger flight business edged up 1.0 percent.
“(The company) moved to strengthen its overseas networks by taking advantage of the increase in takeoff and landing slots for international routes at Haneda Airport last spring,” it said in a statement.
ANA added seven new routes at the airport with flights bound for London, Paris, Munich, Hanoi, Jakarta, Manila and Vancouver.
The airline left unchanged its annual net profit forecast of 35 billion yen for the fiscal year to March.
ANA’s rival said profit for its April-December period slipped by 3.1 percent, to 119.7 billion yen, while revenue rose 3.3 percent to 1.02 trillion yen from a year ago.
But JAL revised up its earnings forecast to a net profit of 139 billion yen — against a previous projection of 135 billion yen — due to falling fuel costs and better sales in its cargo business.
Tags: all nippon airways, Japan Airline(JAL)