ANA charts path to record profit in 3 years, topping pre-COVID high

Japan's ANA Holdings aims to boost group operating profit to a record 200b yen ($1.4b) in fiscal 2025, counting on a rebound in travel demand and growth outside its mainstay airline business to escape a pandemic slump. The figure would beat ANA's all-time high of 165 billion yen, set in fiscal 2018. The carrier targets group sales of 2 trillion yen and a 10% operating profit margin for fiscal 2025, setting a specific time frame for what had been a vaguer medium-term goal. The targets are expected to come alongside first-half earnings due out Monday, followed by a detailed medium-term plan from the All Nippon Airways parent within the fiscal year. On top of attracting more passengers, ANA will seek to widen profit margins through streamlining. The carrier plans to eliminate self-service check-in kiosks for domestic flights by fiscal 2023, switching mainly to online check-in. Payroll in its ANA brand will be cut to 29,000 by the end of March 2026, down by 9,000 employees from March 2021. Diversification is part of the group's strategy as well. ANA seeks to double revenue from other operations to 400b yen by fiscal 2019. As cash flow improves, the carrier plans to pay down interest-bearing debt, which doubled from pre-coronavirus levels to 1.7t yen at the end of June. But headwinds may loom. The IATA predicts that worldwide passenger numbers will rebound past pre-pandemic levels in 2024. But some industry watchers see business travel -- a strength of the All Nippon Airways brand -- staying depressed due to the rise in remote work, and a cooling global economy is expected to dent demand as well.<br/>