Risk to Air Travel Demand and Business Continuity From COVID-19
First written in FY2020. 12 of 17 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2025.
4 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The recovery in air passenger demand is now becoming firmly established. To capture strong air travel demand, the Company worked to increase revenue by restoring the number of flights to pre-COVID-19 levels and operating extra and international charter flights.」
In response to the risks to demand and business continuity caused by the infection, the Company recovered to the stage of restoring the number of flights to pre-infection levels and operating extra and international charter flights. - FY2024-Q3MitigatedAnnual report
「To resolve these material events and other issues, the Company restored the number of flights to pre-COVID-19 levels to capture strong air travel demand, operated extra and international charter flights, and worked to increase revenue. The seat load factor has also almost recovered to pre-pandemic levels. To respond to this increase in air travel demand, the Company resumed hiring employees, returned 1 leased aircraft of an older model, and introduced new aircraft with more seats than before.」
In response to the risks to demand and business continuity caused by the infection, the Company restored the number of flights, operated extra and international charter flights, resumed hiring, and renewed its aircraft. The seat load factor also almost recovered to pre-pandemic levels. - FY2024-Q2MitigatedAnnual report
「The recovery in air passenger demand is now becoming firmly established. To capture strong air travel demand, the Company worked to increase revenue by restoring the number of flights to pre-COVID-19 levels and operating extra and international charter flights.」
Although the impact of declining demand due to the infection remains, the Company disclosed mitigation of the risk through recovery in passenger demand, restoration of the number of flights, and operation of extra and international charter flights. - FY2024-Q1MitigatedAnnual report
「The impact of COVID-19 has gradually eased, and the recovery in air passenger demand is becoming firmly established. The Company’s seat load factor has also almost recovered to pre-pandemic levels. To respond to this increase in air travel demand, we resumed hiring employees and introduced new aircraft with more seats than before.」
The Company reported that the impact of the infection had eased and that passenger demand and the seat load factor had recovered. However, material events caused by the infection and significant doubt about the going concern assumption remain. - FY2023MitigatedAnnual report
「Compared with the previous fiscal year, demand gradually recovered and cash flow from operating activities turned positive. In addition, the Company recorded operating income, ordinary income, and quarterly net income in each quarter from the third quarter onward, and for the full year returned to net income for the first time since the fiscal year ended March 2019, indicating a steady improvement in business performance.」
The impact of declining demand, flight reductions, and suspensions due to the infection remains, but was partially mitigated from the previous fiscal year through recovery in demand, a return to positive operating cash flow, and a return to full-year net income. - FY2023-Q3MitigatedAnnual report
「Compared with the same period of the previous year, demand gradually recovered. In addition to cash flow from operating activities being positive for the cumulative second quarter, the company recorded operating income of ¥1,311 million in the third quarter alone.」
The decline in demand due to the infection, reductions in domestic flights, and suspension of international flights continue, but recovery in demand and operational improvements have progressed, partially mitigating the impact of the risk from the same period of the previous year. - FY2023-Q2MitigatedAnnual report
「Although demand gradually recovered compared with the same period of the previous year and operating results clearly showed signs of improvement, to the extent that quarterly operating profit would have reached the expected level absent the effects of higher crude oil prices and a weaker yen, net cash provided by operating activities for the cumulative second-quarter period turned positive.」
The decline in demand, flight reductions and suspensions, and significant doubt about the going concern assumption due to the infection remain, but recovery in demand, a return to positive cash flow from operating activities, and a narrowing net loss were reported. - FY2023-Q1MitigatedAnnual report
「Although demand gradually recovered compared with the same period of the previous year and operating results clearly showed signs of improvement, to the extent that quarterly operating profit would have reached the expected level absent the effects of higher crude oil prices and a weaker yen, higher crude oil prices and a significant depreciation of the yen had a substantial impact on operating results. The company recorded a quarterly net loss of ¥1,415 million for the cumulative first-quarter period, compared with a quarterly net loss of ¥1,581 million in the same period of the previous year, and total net assets decreased to ¥1,198 million at the end of the first-quarter accounting period.」
The impact of declining demand due to the infection continues, but quarterly net loss narrowed from ¥1,581 million in the same period of the previous year to ¥1,415 million as demand recovered. - FY2022MitigatedAnnual report
「The decline in aviation demand due to the spread of COVID-19 has had a significant impact on the Company’s business performance.」
The decline in demand due to the infection and the risk of breaching financial covenants remain, but the Company also disclosed recovery from the previous year, including increased annual operating revenue, lower expenses, and a narrower loss. - FY2022-Q3MitigatedAnnual report
「Compared with the same period of the previous year, demand has gradually recovered and performance has steadily improved, including an operating income of ¥90 million in December alone. However, conditions remain extremely challenging. The company recorded a quarterly net loss of ¥3,069 million for the cumulative third quarter (quarterly net loss of ¥7,507 million in the same period of the previous year), and total net assets at the end of the third quarter were ¥2,551 million.」
The decline in demand and flight reductions and suspensions due to the infection have continued, but demand recovered year on year and quarterly net loss narrowed from ¥7,507 million to ¥3,069 million. - FY2022-Q2MitigatedAnnual report
「Compared with the same period of the previous year, demand has gradually recovered and business performance has shown a steady improvement, but conditions remain extremely difficult. For the cumulative second quarter, the Company recorded a quarterly net loss of ¥2,698 million, compared with a quarterly net loss of ¥6,411 million in the same period of the previous year, and total net assets at the end of the second quarter were ¥3,035 million.」
The decline in demand and flight suspensions and reductions due to the infection have continued, but quarterly net loss narrowed year on year from ¥6,411 million to ¥2,698 million, indicating a trend toward recovery in demand and business performance. Conditions nevertheless remain difficult. - FY2022-Q1MitigatedAnnual report
「Although demand gradually recovered and operating results clearly showed signs of improvement compared with the same period of the previous year, conditions remained extremely difficult. The company recorded a quarterly net loss of ¥1,581 million for the cumulative first-quarter period, compared with a quarterly net loss of ¥3,773 million in the same period of the previous year, and total net assets were ¥4,221 million at the end of the first-quarter accounting period.」
The decline in aviation demand and flight suspensions and reductions due to the infection have continued, but demand recovered year on year and net loss narrowed from ¥3,773 million to ¥1,581 million. The risk remains, and circumstances that raise significant doubt about the going concern assumption also continue. - FY2021WorsenedAnnual report
「The decline in aviation demand due to the spread of COVID-19 has had a significant impact on the Company’s business performance. Depending on the future spread of the infection, the resulting decline in revenue may last longer and expand further than before, potentially having an even greater impact on the Company’s business performance and financial position.」
The decline in demand due to the infection continues and has expanded as a risk of a full-year loss, deterioration in operating cash flow, and breach of financial covenants. - FY2021-Q3WorsenedAnnual report
「Although demand is gradually recovering and operating results are showing signs of improvement compared with the cumulative second-quarter period, conditions remain extremely difficult. The company recorded a quarterly net loss of ¥7,507 million for the cumulative third-quarter period, and total net assets were ¥94 million at the end of the third-quarter accounting period.」
The decline in demand and reductions and suspensions of flights due to the infection have continued. Quarterly net loss was ¥7,507 million, and net assets were ¥94 million. Although some demand recovered, the impact on business performance and financial position increased from the second quarter. - FY2021-Q2WorsenedAnnual report
「COVID-19 was first identified in China at the end of 2019 and has since spread to many countries and regions. Due to entry restrictions imposed by various countries and requests in Japan to refrain from traveling across prefectural boundaries, demand for the Company’s air transportation business, which is focused mainly on domestic routes, had already begun to decline in late February 2020. From March, when the impact became full-scale, the Company suspended and reduced domestic and international flights to mitigate the impact on business performance.」
The decline in demand due to the infection, reductions and suspensions of domestic flights, and suspension of international flights have continued. For the cumulative second quarter, the Company reported a net loss of ¥6,411 million, and the impact of the risk on business performance and financial position increased. - FY2021-Q1WorsenedAnnual report
「As a result, there is a risk of breaching financial covenants attached to some borrowing agreements, specifically the total amount of net assets at the end of each fiscal year, and events or circumstances exist that could raise significant doubt about the going concern assumption.」
Following losses and a decline in net assets caused by COVID-19, the Company explicitly identified the risk of breaching financial covenants and the existence of significant doubt about the going concern assumption. - FY2020First statedAnnual report
「Since March, when the impact became more pronounced, the Company has reduced or suspended domestic and international services to mitigate the effects on results. However, if the situation persists, a global economic downturn could occur and have a severe impact on the Company’s results and financial position. Some commitment-line and finance-lease agreements also contain financial covenants, and a breach could affect the Company’s financial position.」
The Company newly disclosed the sharp decline in demand, domestic reductions and suspensions, and international suspensions resulting from COVID-19 as of the fiscal year-end, together with the potential for prolonged effects on results and its financial position.