Japan's second-largest air carrier All Nippon Airways lost a record $609.6 million in fiscal 2009, which ended on March 31, hugely multiplying its $44.7 million loss in fiscal 2008. Revenue from operations tumbled 11.8 percent to $13.1 billion. International cargo revenue fell 19.3 percent to $592.6 million.
"In the midst of the global recession brought on by the financial crisis in the United States, aviation demand also dropped due to the effects of the N1H1 influenza in the first half of the year. These factors brought on an extremely harsh business environment at a level of severity we have never seen before," said ANA's executive vice president, Tomohiro Hidema.
ANA responded to the downturn with a program to cut costs and eliminated $1.1 billion from the budget in its 2009 Emergency Income Recovery Plan.
While passenger traffic withered, international cargo revenue fell despite higher volume.
"The drop in unit prices had a significant effect over the full year and revenue fell below that of the previous fiscal year," ANA said in its earnings release. The group carried 422,000 tons of freight on its international routes, up 19.3 percent. Shorter flights brought international freight transportation volume to 1.717 billion ton kilometers, up just 3.9 percent from the previous year.
Domestic cargo revenue fell 3.8 percent to $338.3 million as the group carried 458,000 tons of freight on its domestic routes, down 3.4 percent, and its domestic freight transportation volume amounted to 453 million ton kilometers, down 2.2 percent.
Despite the dismal fiscal 2009 results, ANA expects to see growth in group revenue and swing back into the black in fiscal 2010. "The drop in demand due to the global recession is recovering from its low point in 2009 and the recovery is expected to continue in fiscal 2010 and beyond. However, with the deflationary trend in prices likely to continue, our current outlook of the environment surrounding our business is cautiously optimistic," ANA said.
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