International cargo revenue at All Nippon Airways (ANA) slumped by 17.7 per cent in the 2016 financial year despite freight volumes seeing strong growth.
Revenue was 93.3 billion yen ($838 million) compared to 113.3 billion yen the previous year, despite freight growing 17.7 per cent to 954,000 tonnes, and tonne kilometres were up 17.5 per cent to 4.1 billion.
ANA says revenue in the first half of the fiscal year was affected by the appreciation of the yen and the decrease in revenue from fares with attached fuel surcharges as a result of the fall in the price of jet fuel.
The second half was an improvement and ANA succeeded in capturing demand on flights departing Japan for China and other Asian destinations and flights departing China for North America.
Domestic revenue dipped 2.8 per cent to 30.8 billion yen, with freight volumes down 3.4 per cent to 451,000 tonnes due to poor demand for cargo services and bad weather in Hokkaido.
Revenue for the airline as a whole was down 1.4 per cent to 1.7 billion yen though profits were up 26.4 per cent to 98.8 billion yen.
ANA says it will reduce cargo capacity by 10 per cent and improve efficiency to make a profit.
In October 2017, OCS a logistics company of ANA Group will open a new logistics centre in Tatsumi, Tokyo.