Japan’s Largest Airlines JAL and ANA Report Significant Profit Recovery
Japan’s largest airlines, ANA (All Nippon Airways) and Japan Airlines, have reported a significant recovery in profits for the April-September period as travel demand increased with the easing of COVID-19 restrictions in the country.
ANA’s group net profit more than quadrupled from the previous year to ¥93.21 billion ($620 million), while Japan Airlines posted a consolidated net profit of ¥61.67 billion, a record high for the first half since its relisting on the Tokyo Stock Exchange in 2012.
Both airlines benefited from an increase in domestic and international travelers, with ANA’s operating profit also more than quadrupling to ¥129.74 billion, and sales growing by 26.8% to ¥1 trillion. The relaxation of COVID-19 measures and the downgrading of the virus’s legal status contributed to the rise in travel, including an influx of inbound tourists.
The number of domestic flight passengers has reached about 90% of pre-pandemic levels in 2019, and international flight passengers have returned to about 70%, according to ANA. While maintaining its full-year earnings forecast due to strong travel demand, ANA announced it would reduce approximately 30 domestic and international flights per day from January 10 to March 30 for engine inspections, affecting annual sales by ¥8 billion.
All Nippon Airways projects a net profit of ¥80 billion on sales of ¥1.97 trillion for fiscal 2023. Meanwhile, Japan Airlines returned to profitability in the April-September period, increasing sales by 32.7%. They raised their net profit forecast for the current fiscal year to ¥80 billion and anticipate challenges related to oil prices and the weak yen impacting outbound travel demand from Japan.