Tokyo, November 1, 2023 - Japan's leading airlines, All Nippon Airways (ANA) and Japan Airlines (JAL), have reported impressive profit increases for the April to September period, indicating a robust resurgence in travel demand.
ANA Holdings revealed that its net profit skyrocketed nearly fivefold to 93.2 billion yen ($616 million) compared to the previous year. Notably, this profit also marked a substantial increase of 57 billion yen from the same pre-pandemic period in 2019. The primary driver behind this remarkable growth was the recovery in tourism, with both international visitors to Japan and outbound Japanese travelers making strong comebacks.
ANA has retained its full-year profit forecast of 80 billion yen, taking into account the rising fuel costs and challenges related to aircraft engine problems. On the other hand, Japan Airlines (JAL) saw its net profit reach 61.6 billion yen, surpassing the results from 2019. In light of these impressive figures, JAL has upgraded its annual outlook to 80 billion yen.
The stellar earnings reports from Japan's major carriers align with the broader trends seen in the travel industry as many countries eased border restrictions during the summer, unleashing pent-up travel demand. Airlines further benefited from travelers indulging in deferred leisure and business trips. Additionally, ANA and JAL's focus on high-revenue international routes contributed to their enhanced profitability.
However, potential risks loom on the horizon, including fuel price volatility, global inflationary pressures, and China's zero-COVID policy. Nonetheless, for now, the airline industry is soaring high on the wings of a post-pandemic travel boom
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