Peach achieves profitability in third year of operation, expects higher revenue in FY2014
Peach reported (19-Jun-2014) the LCC's first profit in its third year of operation in FY2013 ended 31-Mar-2014. Peach CEO Shinichi Inoue said the carrier's result proves "that LCC is a successful business in Japan, if all circumstances are right. That is against conventional view of LCC which is quite negative." He explained that "We manage to keep high load-factor through the year because we have developed a very new customer segment -totally non-traditional market. On top of this, I am very much pleased to say that LCC is beginning to take root in a part of customers' life style and has stimulated potential and existing airline customers." Details of Peach FY2013 results are as follows:
- Operating revenue: JPY30,595 million (USD305.3 million), +113% year-on-year;
- Operating profit: JPY2007 milion (USD20.0 million), compared to a loss of JPY960 million (USD9.6 million) in p-c-p;
- Net profit: JPY1046 million (USD10.4 million), compared to a loss of JPY1209 million (USD12.1 million) in p-c-p;
- Passenger numbers: 3.0 million;
- Passenger load factor: 83.7%. [more - original PR]
Looking ahead, Mr Inoue said the carrier "expects to achieve higher operating revenues for FY2014 by developing and implementing a solid business plan."