ANA Reports a Net Loss Nearly $3Bn as Covid-19 Hits Airline Operations Badly

ANA Holdings Inc., a holding company, which provides domestic and international air transportation services, reported a net loss of 309,575 million yen (approx. 2,959 million US dollars) for its nine-months financial report ended December 31, 2020, down from a net profit of 86,446 million yen in 2019. The decrease was due to the effects of COVID-19 and ANA HD was impacted with a sudden decrease in corporate earnings.

 

The company stated that the airline industry has faced an unprecedented, worldwide and severe contraction, resulting from passenger demand which dramatically decreased by immigration restrictions and stay-at-home requests in Japan.

Under these economic conditions, operating revenues decreased from 1,528 billion yen to 527.6 billion yen due to the severe impact across all segments. As a result, ANA HD implemented measures to cut costs by 473.0 billion yen through reducing fixed costs, in addition to reducing variable expenses by curbing the scale of operations. The company also recorded special losses of ¥76.0 billion due to business restructuring expenses, including impairment losses due to large scale early retirement of aircraft aimed at improving the balance of revenue.