TOKYO: All Nippon Airways plans to halve its international flight services in fiscal 2021, which starts in April, from the initially planned levels for fiscal 2020, drawn up before the spread of the novel coronavirus, Jiji Press learned Monday.

The main subsidiary of ANA Holdings Inc. is expected to announce its fiscal 2021 flight service plans on Tuesday, informed sources said.

Specifically, the major Japanese airline will fully or partially cancel flights on 19 international routes, including those between Narita International Airport in Chiba Prefecture, east of Tokyo, and New York, and between Kansai International Airport in Osaka Prefecture, western Japan, and Hong Kong, under its summer timetable for late March to the end of October, informed sources said.

It will put on hold plans to open new routes linking Tokyo International Airport at Haneda with four cities–Milan, Istanbul, Moscow and Stockholm, the sources said.

ANA Holdings had estimated that passenger demand at the end of fiscal 2020 would be 70 pct of the level before the coronavirus crisis for domestic flights and 50 pct for international flights.

But the resurgence of the virus has pushed down demand for domestic flights sharply of late. Demand for international flight services has fallen to below 10 pct of the pre-crisis level.

The airline now forecasts that demand for international flights, including among business travelers and inbound tourists, will continue to be sluggish due to strict entry restrictions, according to the sources.

But it expects international service demand at the end of fiscal 2021 to recover to some 50 pct of the pre-epidemic level as more and more people get vaccinated against the novel coronavirus.

Demand for domestic flights is seen to be around 80 pct of the level before the crisis in fiscal 2021. At the end of the fiscal year, demand is projected to recover to 90 pct, thanks to progress in vaccinations and an expected restart of the government’s Go To Travel tourism promotion campaign, which has been suspended nationwide due to the resurgence of the virus.

In fiscal 2020, ANA Holdings expects to post its biggest-ever consolidated net loss of 510 billion yen.

Aiming to returning to profitability in fiscal 2021, the airline group has received financial support mainly from Sumitomo Mitsui Banking Corp. and the government-affiliated Development Bank of Japan. It also faces the challenges of boosting demand and thoroughly reducing costs.

JIJI Press