ANA Holdings Inc. reported on Friday a record group net profit in fiscal 2016 on lower fuel costs and cost-cutting efforts, while Japan's other major carrier Japan Airlines Co. saw its profit fall.
In the business year ended March 31, ANA, the parent of All Nippon Airways Co., said its consolidated net profit grew 26.4 percent from the preceding year to 98.83 billion yen ($890 million).
The company's group operating profit rose 6.7 percent to 145.54 billion yen, also a record high, although its sales fell 1.4 percent to 1.77 trillion yen on lower surcharge revenue and a firmer yen, which dented its overseas revenue in yen terms.
ANA carried 9.12 million passengers on its international flights, up 11.6 percent from the previous year due to brisk business flight demand to and from Japan as well as solid demand from passengers flying to the United States from Asia through Japan.
Meanwhile, JAL saw a 5.9 percent year-on-year fall in its group net profit to 164.17 billion yen as its international passenger flight revenue declined due to a drop in fuel surcharge revenue and the yen's appreciation.
The company's operating profit sagged 18.6 percent to 170.33 billion yen on sales of 1.29 trillion yen, down 3.6 percent from the previous year.
JAL had 8.4 million passengers on its international flights in the reporting business year, down 0.8 percent from fiscal 2015.
Domestic passenger revenue for ANA fell 1.1 percent to 678.33 billion yen and that for JAL declined 0.5 percent to 498.63 billion yen, due partly to powerful earthquakes that hit the southwestern Japan prefecture of Kumamoto in April last year, which sapped demand for flights to Kumamoto and surrounding areas in the Kyushu region.
For fiscal 2017 ending next March, ANA projects a group net profit of 125 billion yen, up 26.5 percent, and operating profit of 150 billion yen, up 3.1 percent, on sales of 1.91 trillion yen, up 8.2 percent.
JAL's consolidated net profit is estimated at 100 billion yen, down 39.1 percent, and operating profit at 142 billion yen, down 16.6 percent. Sales are expected to rise 3.9 percent to 1.34 trillion yen.
© Kyodo News International, Inc., source Newswire