Japan Airlines, the country's flag carrier and second-largest airline, is seeing its revenue fall. Photo: iStock

Japanese airlines ANA and JAL said Friday that skyrocketing demand ahead of the 2020 Olympics had boosted their bottom line.

ANA booked a record operating profit of 165 billion yen ($1.5 billion), up 0.3% on the previous year as sales grew more than 4% to 2.05 trillion yen.

“The airline industry in Japan has generally seen strong demand along with a large increase in foreign visitors to Japan,” the company said.

However, net profits fell 23% on a year-on-year basis because last year’s figures included a one-off gain from integrating a low-cost carrier as a subsidiary.

Looking ahead, ANA forecast net profit would slip 2.5% to 108 billion yen and that operating profits would stagnate.

Rival JAL saw net profit rise 11.4% to 150.8 billion yen as “demand for international flights expanded.”

However, JAL also predicted headwinds, with net profits seen dropping around 25% as costs rise due to the ballooning price of fuel and an expanded fleet.

– with reporting by AFP

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now. 

Leave a comment

Your email address will not be published. Required fields are marked *