Japanese airline ANA to report narrower-than-expected financial year loss on cost cuts, tax assets

Japanese airline ANA to report narrower-than-expected financial year loss on cost cuts, tax assets
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SYDNEY (April 23): Japanese airline ANA Holdings Inc said on Friday its full-year operating loss would be narrower than previously forecast, though still hefty amid the coronavirus travel slump, due to steeper cost cuts and deferred tax assets changes.

ANA forecast it would post a ¥465 billion (US$4.31 billion) operating loss for the financial year ended March 31, narrower than its last estimate of ¥505 billion, made in October.

The airline said that though passenger demand had declined due to the pandemic, the new forecast reflected cost reductions from reducing the scale of operations and cutting fixed costs by decreasing aircraft and selling expenses.

ANA last year raised US$3.2 billion of equity, much of which it said would be used to fund its orders of fuel-efficient Boeing Dreamliner jets.

Like other big global airlines, ANA has been making cost cuts, including pay reductions, to cope with the coronavirus-driven travel slump.