Japan’s biggest airline, ANA Holdings,, said it expected to report an operating loss in the current financial year, down from an earlier prediction of a profit, and that it would reduce staff numbers by 20 per cent within five years.

The airline announced the plans to eliminate 9,000 roles through attrition and retirement as it steps up digital interaction with customers in an investor presentation after reporting a weaker-than-expected first half result due to travel curbs.

The operating loss of 116 billion yen ($1.02 billion) for the six months ended 30 September, however, was narrower than a 280.95 billion yen loss a year earlier due to cost-cutting.

Forecast recovery

ANA, which has reported losses for seven consecutive quarters, said it expected to return to a profit in the fourth quarter due to a forecast recovery in passenger numbers.

But for the 12 months ended March 2022, it expects to report an operating loss of 125 billion yen, down from its earlier guidance for an operating profit of 28 billion.

“The revised forecast reflects the findings that projected second-half revenue will not be sufficient to cover lack of revenue during the first half of the fiscal year,” the airline said in a statement..

ANA expects domestic passenger numbers to recover to 85 per cent of pre-Covid-19 levels by March but international passengers to reach only 30 per cent of pre-pandemic levels by then.

Source: Civil Aviation Authority – Qatar