ANA to expand low-cost segment

TOKYO: ANA Holdings Inc, Japan’s biggest airline by revenue, said yesterday it plans to expand its lower-cost carriers business in the medium-haul segment due to robust travel demand in Asia, after it notched a strong third quarter performance.

In its mid-term plan, the carrier said it was aiming for ¥2.45 trillion (RM87.3 billion) in revenue in the fiscal year 2022, up 27% from the ¥1.93 trillion seen in the current fiscal year through March. It also expects 50% growth in its core international service.

ANA overtook its once-bankrupt rival Japan Airlines Co (JAL) in 2016 to become the country’s biggest international airline and holds a higher Skytrax rating for passenger service and comfort.

ANA benefited from JAL’s bankruptcy by winning slots at Haneda Airport, the airport preferred by business travelers departing from or arriving in Tokyo. The airline is also a major player in the growing budget aviation market in Japan, where its brands Vanilla Air and Peach Aviation compete against Jetstar Japan and the newly relaunched AirAsia Japan.

Operating profit jumped around 25% in the three months to December, to about ¥50.9 billion, according to Reuters calculations based on the company’s results for the first nine months of the fiscal year.

ANA maintained its forecast that operating profit for the year to March would hit ¥160 billion. – Reuters