Japanese airline ANA said Tuesday (27 October) that it is forecasting an operating loss of nearly US$5 billion and would retire more than a tenth of its mostly Boeing fleet and delay two aircraft orders to save cash in order to survive the downturn in aviation caused by the COVID-10 pandemic. The airline also said it would probably lose US$4.82 billion for the year to 31 March and would transfer more than 400 workers to other companies and ask those remaining to accept pay cuts or unpaid leave. ANA also announced it would create a new low-cost carrier in addition to its Peach budget airline.
ANA said it would retire 35 planes, 28 of them early, including 22 Boeing 777 widebodies and delay delivery of one 777 and one Airbus SE A380 superjumbo. That will reduce its fleet by a net 33 aircraft to 276 planes. To ensure it has enough cash to survive the downturn, the airline on Tuesday also confirmed it had secured US$3.8 billion in subordinated loans from state-backed and private lenders.
“Compared with the first quarter, the second quarter has recovered significantly, which proves that we’ve already bottomed out and are seeing dramatic recovery.”, said Ichiro Fukuzawa, executive vice president and chief financial officer of ANA. “Though we have faced cumulative losses in the first half of the fiscal year, the entire organisation has shown strength and resolve in uniting to make the necessary sacrifices and support the required changes to get us through this COVID-19 outbreak and positioned for the future. I am confident that the shared spirit of the ANA group and its employees, combined with our Business Structure Reform Plan, we will lead to future growth and success.”
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