The parent of Japanese carrier All Nippon Airways (ANA) said Friday it booked a record profit in the just-ended fiscal year as its international business took off, but rival Japan Airlines saw profits dive.
ANA Holdings said it saw a 26.4 percent rise in net profit to 98.83 billion yen ($888 million) for the year to March, but overall revenue ticked lower as the carrier cut a fuel surcharge on tickets.
ANA was upbeat on the year ahead, forecasting an increase in profits and revenue on the back of a boost in the number of overseas flights it operates.
"ANA continues to see steady income from its international flights as it's been expanding global routes," Hiroshi Hasegawa, an analyst at Tokyo-based SMBC Nikko Securities, said before the earnings were published.
"Its efforts to cut costs is also contributing to the bottom line," he added.
But it was a different story for Japan Airlines, which said annual net profit of 164.17 billion yen was 5.9 percent lower than a year ago.
Revenue fell 3.6 percent to 1.289 trillion yen, it said.
The carrier blamed a slump in income from its international flights and higher personnel costs.
For the current year to March 2018, the airline said it expects a 39 percent drop in net profit due to an expected rise in fuel, aircraft maintenance and purchase costs.
The downbeat results came despite a year of low fuel prices and booming tourism ahead of the 2020 Tokyo Olympics.
"Tourism will continue to be a major positive factor from now until the 2020 Games," Hasegawa said.
