TOKYO: The parent company of Japanese carrier All Nippon Airways (ANA) said Wednesday its quarterly net profit skyrocketed after it raised its stake in a budget carrier, confirming it is on course for a new record full-year profit.
ANA Holdings has soared in recent years, booking an all-time high net profit for the last fiscal year on gains in its international business, reports AFP.
It said Wednesday that net profit came to 51.1 billion yen ($462 million) for April-June, up from 6.6 billion yen from a year earlier.
The profit gain was mainly due to income from the inclusion of Peach Aviation as a consolidated subsidiary from April after it increased it stake in the budget carrier, ANA said in a statement.
ANA currently has a 67 percent share in Peach.
By putting Peach under its umbrella, ANA, which also controls budget carrier Vanilla Air, aims to grab a bigger portion of Japan's low cost carrier (LCC) market, analysts said.
"ANA continues enjoying steady income from its international flights as it has been expanding global routes," said Hiroshi Hasegawa, an analyst at SMBC Nikko Securities in Tokyo.
"ANA's LCC business is drawing attention as its growth strategy," Hasegawa said before the earnings release. ANA's sales for the quarter jumped 11.7 percent to 451.7 billion yen, with operating profit up 80.0 percent at 25.4 billion yen.
It left its full-year forecast unchanged, still expecting a new record of 125 billion yen for the current fiscal year to March 2018.
Annual sales are seen at 1.91 trillion yen, with operating profit forecast at 150 billion yen.