Japan's ANA cites terrorism as Q1 net profit tumbles

The parent company of Japan's All Nippon Airways on Wednesday cited "terrorist incidents" in Europe and earthquakes at home for helping drag its April-June net profit down more than a fifth. ANA Holdings posted net profit of Y6.6b (US$65.8m) for its fiscal first quarter, 20.7% lower than the same period last year, adding that a strong yen also took a bite out of its bottom line. The airline's cargo business struggled in the quarter, while demand for domestic flights were affected by deadly earthquakes in southern Japan in April. "Revenues and profits for the period were affected by (the) Kumamoto earthquake and terrorist incidents in Europe, in addition to exchange rates and crude oil market conditions," ANA said. A sharp rally in the yen is threatening profits at major Japanese firms as it makes them less competitive overseas and shrinks the value of repatriated profits. Demand for flights to Europe have taken a hit following a series of attacks. ANA said its overseas business still saw stronger results owing to an expansion of international routes. The firm left its profit and sales forecasts unchanged for the fiscal year to March 2017. It expects net profit to hit Y80b, operating profit at Y145b and sales of Y1.81t.<br/>