TOKYO: Skymark Airlines made a comeback to the Japanese stock market on Wednesday, nearly eight years after it was delisted in March 2015.

On the Tokyo Stock Exchange’s Growth section on the day, the company started at 1,272 yen and finished at 1,277 yen, higher than its initial public offering price of 1,170 yen.

Skymark, which operates on 23 domestic routes to and from 12 airports, aims to return to a growth path amid a recovery in air passenger demand from the COVID-19 crisis.

“Our aim will not change,” President Hayao Hora told a press conference in Tokyo on Wednesday, emphasizing that the company will aim to grow by refining its unique business model of high quality at low price.

The company will use funds raised through the IPO to upgrade its fleet to more fuel-efficient models with more seats, in order to meet demand mainly for flights to and from Tokyo’s Haneda Airport.

It hopes to expand annual sales to at least 110 billion yen by around fiscal 2025 to fiscal 2026, from 84.8 billion yen projected for fiscal 2022.

On international flights suspended amid the pandemic, such as those between Narita International Airport in Chiba Prefecture, east of Tokyo, and the Pacific island of Saipan, Hora said that the company does not have specific plans for their resumption until around fiscal 2026.

He suggested that the airline will focus on domestic routes for the time being while considering when to resume international flights.

Skymark was founded in 1996. Due to cash-flow problems stemming from severe competition with budget airlines and excessive investment, it filed for bankruptcy protection with Tokyo District Court in January 2015.

With investment and support from companies including investment fund Integral Corp., the Development Bank of Japan, Sumitomo Mitsui Banking Corp. and ANA Holdings Inc., the airline achieved a turnaround, and its stock relisting was approved last month.

After the issuance of new shares for the IPO, Integral’s stake in Skymark fell from 50.1 pct to 27.0 pct, ANA Holdings’ stake decreased from 16.5 pct to 12.9 pct.

Thanks to a rebound in domestic passenger demand, Skymark expects to return to a net profit in the ongoing fiscal year.

JIJI Press