Loading
20-Jun-2014 9:48 AM

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."

Want More News Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More