ANA may cut profit forecasts
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All Nippon Airways (ANA) may cut its profit forecast by as much as 33% as it struggles with high fuel prices and declining passenger numbers, Bloomberg has reported. ANA had predicted annual gains of JPY27 billion (US$267 million), but is expected to slash this forecast to just JPY18 billion..
The reason for the adjustment is that ANA had hedged 90% of its fuel needs for this fiscal year as of June, obligating it to buy its jet fuel at fixed prices. However the price of jet kerosene has almost halved since its record highs in July. A 20% hike in fuel surcharges has also seen ANA’s passenger numbers decline.
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