Japan Airways’ annual internet revenue plunged practically 65 p.c, the corporate mentioned Thursday, because it confronted the “unprecedented” impression of the coronavirus pandemic on aviation demand.
JAL mentioned internet revenue for the fiscal yr ending in March fell 64.6 p.c to 53.Four billion yen ($500 million) on annual gross sales of 1.Four trillion yen, down 5.1 p.c.
The outcomes had been largely according to a revenue warning the airline issued final week.
JAL mentioned demand had plunged owing to entry bans around the globe, the cancellation of main home occasions, and a state of emergency in Japan with authorities urging residents to not journey.
“Our group is dealing with an unprecedented scenario,” the corporate mentioned in a press release.
The airline didn’t launch earnings forecasts for the present monetary yr, citing uncertainty over the pandemic.
For now, JAL plans to chop its variety of flights by 90 p.c on worldwide routes and greater than 60 p.c on home routes from its flight schedule introduced earlier than the pandemic.
However the agency mentioned it remained optimistic concerning the outlook.
“The decline in flight demand because of the impression of the brand new coronavirus is a brief phenomenon and our mid- and long-term forecast that demand for flights from and to Japan will develop significantly has remained unchanged,” it mentioned.
On Tuesday, home rival ANA Holdings mentioned its annual internet revenue dived 75 p.c to 27.6 billion yen on gross sales of 1.9 trillion yen, which had been down 4.1 p.c.
ANA had been anticipating robust gross sales but additionally greater prices because it ready to develop providers within the higher Tokyo area forward of the 2020 Olympics.
However the pandemic has pressured the Video games to be delayed by a yr and battered Japan’s tourism sector, whereas many international locations have cancelled or restricted worldwide and home journey.
(This story has been revealed from a wire company with out modifications to the textual content)