ANA Reports FY 2020 Net Loss of $3.7 Billion on 63 Percent Revenue Decline to $6.7 Billion
Updated: 3 days ago
ANA has reported a fiscal year 2020 net loss of 404.6 billion yen (US $3.7 billion) on a 63 percent year-over-year decline in revenue to 726.8 billion yen (US $6.7 billion). During FY20 the carrier implemented cost reduction measures totaling 590 billion yen (US $5.4 billion).
On Friday (April 30, 2021), All Nippon Airways (ANA) reported a fiscal year 2020 net loss of 404.6 billion yen (US $3.7 billion) on a year-over-year revenue decline of 63 percent to 728.6 billion yen (US $6.7 billion). During FY20 ANA implemented cost reduction measures totaling 590 billion (US $5.4 billion) and cut variable operating, personnel and other costs. The company also recorded a special loss of 86.3 billion yen (US $790 million) for Business Structure Reform expenses, which included an impairment loss attributable to the early retirement of many aircraft, including 28 widebodies.
In Friday’s announcement, ANA Holdings’ Executive Vice President and Chief Financial Officer, Ichiro Fukuzawa, said,
“Though we faced numerous and complex challenges this year, it is evident that ANA HD took the necessary steps to strengthen operations and that we are on track for recovery. Everything that we did, from raising capital through the public offering to securing cash through subordinated loans and including the strategic recording of special losses on the value of our widebody aircraft, was done to strengthen our finances.
“Now that we see the light at the end of the tunnel, ANA HD is in a position to meet rising demand by providing safe, reliable and convenient travel options at the same level of customer experience we are recognized for. Our employees have endured a challenging year, but COVID-19 did not stop us from continuously improving our services, and we are ready to welcome back our customers. We are forecasting a return to profit for the fiscal year of 2021, and are confident that the actions we took during this past year will guide us.”
Founded in 1952, ANA serves 82 international and 118 domestic destinations from their dual Tokyo hubs at Narita and Haneda airports. The carrier has been a Star Alliance partner since 1999 and currently has joint partnerships with United Airlines, Lufthansa, SWISS and Austrian Airlines. The ANA Group also owns Japanese low-cost carrier (LCC) Peach Aviation Limited. ANA has approximately 43,000 employees and operates a fleet of 260 aircraft. Additionally, the carrier was the launch customer and is the largest operator of the Boeing 787 Dreamliner Family aircraft.
Source: All Nippon Airways