Japanese airline ANA to report narrower-than-expected FY loss on cost cuts, tax assets

Credit: REUTERS/ISSEI KATO

April 23 (Reuters) - Japanese airline ANA Holdings Inc 9202.T said on Friday its full-year operating loss would be narrower than previously forecast, though still hefty amid the coronavirus travel slump, due to steeper cost cuts and deferred tax assets changes.

ANA forecast it would post a 465 billion yen ($4.31 billion) operating loss for the financial year ended March 31, narrower than its last estimate of 505 billion yen, made in October.

The airline said that though passenger demand had declined due to the pandemic, the new forecast reflected cost reductions from reducing the scale of operations and cutting fixed costs by decreasing aircraft and selling expenses.

ANA last year raised $3.2 billion of equity, much of which it said would be used to fund its orders of fuel-efficient Boeing Dreamliner jets.

Like other big global airlines ANA has been making cost cuts, including pay reductions, to cope with the coronavirus-driven travel slump.

($1 = 107.9100 yen)

(Reporting by Jamie Freed in Sydney; Editing by Kenneth Maxwell)

((Jamie.Freed@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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