All Nippon Airways 3Q net profit falls

TOKYO --All Nippon Airways Co.'s profit in the third quarter fell 8.5 percent due to continued high jet fuel costs and extra cost for the disposal of aircraft and equipment, Japan's second-biggest airline said Wednesday.

Net income totaled 9.3 billion yen ($76.23 million) in the October-December period, down from 10.1 billion yen a year earlier.

But revenue rose 9.9 percent to 381.6 billion yen ($3.13 billion) from 347.2 billion yen, thanks to demand for travel in general, buoyed by continued recovery in Japan's economy and a gradual increase in frequency on routes with ANA's network.

But profits were hit by higher jet fuel costs, the airliner said in a statement. The cost of crude oil added 39 billion yen ($319.7 million) to the ANA's fuel bill for the first nine months of the current business year, which ends March 31, it said.

Extra cost for the disposal of aircraft and engine parts, a one-off factor not seen in the same quarter a year earlier, also affected the profit.

In its international air transportation, demand for both business and leisure travel remained strong, ANA said. The carrier resumed flights from Tokyo's international airport at Narita to Chicago in November, and increased the frequency on several China routes to daily, it said.

On the domestic front, demand for travel remained strong, with passenger numbers on the rise, as ANA began offering a discount fare in April and promotional campaigns to spur demand for travel to Japan's southernmost island of Okinawa.

ANA is forecasting a 3.7 percent rise in net profit to 28 billion yen ($22.95 million) for the full fiscal year ending March. It raised revenue outlook slightly to 1.480 trillion yen ($12.13 billion).

ANA shares closed down 0.45 percent to 445 yen ($3.65) on the Tokyo Stock Exchange.

Japan Airlines, the nation's biggest airline on revenue, is slated to report its earnings on Feb. 6.