ANA, JAL Project Lower Profits amid Higher Fuel Costs

Tokyo, May 1 (Jiji Press)--Major Japanese airlines ANA Holdings Inc. and Japan Airlines said Thursday that they forecast sharply lower profits for the year ending in March 2027 as the war in Iran sent fuel prices surging.

ANA, the parent of All Nippon Airways, said it expects to post a consolidated net profit of 96 billion yen, down 43.2 pct from the previous year, while JAL forecasts a 20.1 pct decline in net profit to 110 billion yen.

ANA expects higher fuel costs to push down its operating profit by about 60 billion yen. It also anticipates higher maintenance costs.

JAL said that if fuel prices remain elevated, there will be an 11-billion-yen hit to its profits per month in its fiscal first quarter ending next month.

But the company added that the impact from the war in Iran will be offset by an increase in its fuel surcharges.

[Copyright The Jiji Press, Ltd.]