ANA reports quarterly loss, scraps dividend with traffic halted

ANA Holdings Inc. reported a quarterly operating loss of 59 billion yen ($551 million) as it struggles with the near-total shutdown in global aviation to contain the coronavirus outbreak.

The result for the period ending in March compares with a 8.4 billion yen profit a year earlier, and was mostly in line with analysts’ average projection. Japan’s biggest carrier also scrapped its annual dividend for the just-ended year.

ANA is just the latest airline to paint a dire picture as the pandemic grounds planes and passengers. The industry could lose $252 billion in revenue this year due to the crisis, according to the International Air Transport Association. ANA is planning to cut domestic flights by 85% during the annual Golden Week holiday starting this week.

Sales for the quarter slumped 20% to 392 billion yen, and ANA is placing 45,000 staff on furlough.

The Japanese carrier is in talks to receive a 300 billion yen loan from the Development Bank of Japan to aid its finances due to the impact of the pandemic. It has also delayed the delivery of Airbus’s double-decker jet for six months.

ANA Executive Vice President Ichiro Fukuzawa said the airline is also seeking a 350 billion yen credit line from banks, adding that he doesn’t see any funding issues for now