ANA halves quarterly loss on cost cuts and cargo demand

ANA Holdings is likely cut its operating loss by half for the April-June period to about 75b yen ($680m), Nikkei has learned, as cost-cutting efforts and strong demand for airfreight begin to lift the group out of a coronavirus-induced downturn. The Japanese airline group, which operates All Nippon Airways, faces a sixth straight quarter of losses. But the April-June figure would be the smallest since January-March 2020 when the coronavirus first spread worldwide, signaling that the worst of ANA's troubles may be over. Fewer flights, smaller planes and the loaning of workers to outside companies let ANA Holdings cut costs. The company also retired larger planes ahead of schedule last fiscal year, which decreased depreciation expenses. Revenue is expected to have jumped 60% on the year to about 200 billion yen. The figure is smaller than in October-December, when the government's Go To Travel campaign boosted travel-related businesses in Japan, but the operating loss also has declined since. Demand for travel shows signs of recovery. Passenger numbers for ANA Holdings in the April-May period rose 290% on the year to 2.23m for domestic flights as well as 35% to 80,000 for international trips, despite Japan facing its third coronavirus state of emergency at the time. Meanwhile, the decrease in passenger flights during the pandemic has lifted airfreight prices, in a boon to carriers. ANA Holdings tapped demand by stationing a cargo plane in the Chinese city of Hangzhou during June.<br/>