Tokyo - All Nippon Airways Co (ANA) on Friday lowered its earnings forecast for the current fiscal year as it saw its second-quarter profits fall because of rising fuel prices and slow demand for air travel. Japan's second-largest airline said its operating profit declined 18.6 per cent in the July-September period from the same quarter a year ago to 35.2 billion yen (358.48 million dollars).
Its net profit was down 2.7 per cent to 15.3 billion yen, and sales were down 5.8 per cent to407.8 billion yen.
ANA attributed the results to slowing demand for domestic travel and severe competition with other airliners and railway transport services.
For the full fiscal year through March, the company lowered its net profit forecast by 37 per cent to 17 billion yen from an initial figure released in July.
Operating profit was expected to be 55 billion yen, down 31 per cent, and sales were put at 1.46 trillion yen, down 2.7 per cent.
Operating profits, a company's earnings minus interest payments and taxes, are seen as a measure of its earnings power from ongoing operations.
For the first half of the fiscal year, ANA saw its net profit tumble 79 per cent to 22.05 billion yen. The large fall was a result of rising fuel prices and the sales of hotels to Morgan Stanley.
ANA's operating profit fell 25.7 per cent to 49.84 billion yen during the six months of the year.
Sales were down 1.3 per cent to 753.33 billion yen.
