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Japan's ANA issues profit warning, cuts guidance, citing trade war


JAPAN's ANA Holdings has cut its full-year operating income guidance by 15 per cent, citing a decline in cargo demand stemming from US-China trade issues, a slowdown in business demand and intensifying competition in the budget sector, Reuters reports.

The country's largest airline by revenue reported operating income of JPY78.8 billion (US$723.07 million) for the six months that ended September 30, down 25 per cent from a year earlier. It lowered its full-year operating income forecast to JPY140 billion, from JPY165 billion previously.

ANA's international cargo revenue fell by 20.4 per cent and its domestic cargo revenue by 9.9 per cent in the first half because of the trade war and a slowdown in the global economy.

The International Air Transport Association (IATA) this month reported air cargo volumes globally had shrunk for the 10th consecutive month in August, the longest period since the global financial crisis in 2008.

In the passenger market, ANA said that revenue increased year on year as it expanded in Hawaii and Europe, but that international business travel demand had slowed.

ANA said those trends looked set to continue in the second half of the year, along with intensifying competition in the low-cost carrier sector.

The airline also reported a decline in revenue from its budget carrier operations in the first half as it merged Vanilla Air with Peach Aviation.

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