Japan's All Nippon Airways posts record revenue on improving economy
Tokyo (XFN-ASIA) - All Nippon Airways (ANA) said its net profit
grew by nearly a quarter and its revenue hit a new record in the year to March
as more Japanese flew overseas thanks to a recovering economy.
Japan's second largest carrier, which has enjoyed healthy earnings, said it benefitted from the popularity of new or expanded routes to China, Singapore and Chicago.
ANA said its net profit grew 22.2 pct to 32.6 bln yen in the year to March, the second strongest performance in the company's history.
Operating profit grew 3.8 pct to 92.1 bln yen and revenue rose 8.8 pct to 1.49 trln yen, both company records.
However, ANA said its profits are still squeezed by high oil costs, with the fuel bill 31.3 pct higher than in the previous year.
"We have seen strong demand for both business and leisure travel in tandem with the performance of the Japanese economy as a whole," Mineo Yamamoto, president and CEO, said in a statement.
The company predicted net profit would grow 31.4 pct in the current financial year to hit 64 bln yen from the sale of its hotel business to Morgan Stanley.
The US investment banking giant agreed earlier this month to buy the 13 hotels for 281.3 bln yen in what is believed to be the largest real estate deal in Japanese history.