After two years of losses, Japanese airline ANA says outlook finally improving

Japanese airline ANA Holdings forecast a return to annual profit as a rebound in domestic demand and easing international travel curbs aid in its recovery from two years of pandemic-driven losses. The carrier on Thursday posted an operating loss of 173.1b yen ($1.3b), but expects to swing to a 50b yen profit in the year that began April 1. Japan's largest airline said a sustained focus on reducing operating expenses along with increased domestic travel, strong cargo sales and favorable conditions for growth of international traffic point all point to a better year. Japan in late March lifted all domestic pandemic restrictions. That has cleared the way for a forecast recovery in domestic flight demand to 80% of pre-pandemic levels on average this financial year, ANA Chief Executive Koji Shibata told reporters. The number of passengers who booked flights for next week's string of public holidays known as "Golden Week" is expected to roughly double from a year ago, he added. Annual revenue surged 40% to 1.02t yen, driven in part by a record cargo performance and is forecast to jump another 63% this financial year. In the international market, ANA and rival Japan Airlines face uncertainties from Japan's prolonged border restrictions and rising fuel costs worsened by the war in Ukraine.<br/>