(TAN): ANA Holdings has released its financial results for the six months that ended September 30. Due to the global impact of the Covid-19 outbreak and resulting worldwide travel restrictions that led to the suspension of select flights, the first six months of the fiscal year results showed significant declines and ended with a net loss of JPY 188.4 billion (USD 1.8 billion).
In the first six months of fiscal year 2020 (April 1 to September 30), although the Japanese economy is naturally in a difficult position due to the effects of the pandemic, including a sudden decrease in corporate earnings and a weakening trend in terms of employment, a movement toward a recovery has been noticed.
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Due to a decrease in passenger demand triggered by immigration restrictions and stay-at-home requests, the environment of the airline industry has faced severe unprecedented situations.
Under these economic conditions, operating revenues decreased rapidly due to the severe impact on all segments. ANA Group implemented cost reduction measures of JPY 333 billion (USD 3 billion) by decreasing the fixed expenses, in addition to reducing variable expenses due to curbing the scale of operations.
However, due to the extremely large reduction in operating revenues, heavy net loss could not be avoided.
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“Compared with the first quarter, the second quarter has recovered significantly, which proves that we’ve already bottomed out and are seeing dramatic recovery,” said Ichiro Fukuzawa, ANA Holdings’ EVP and CFO. “Though we have faced cumulative losses in the first half of the fiscal year, the entire organization has shown strength and resolve in uniting to make the necessary sacrifices and support the required changes to get us through this Covid-19 outbreak and positioned for the future.”.
