Oct 29 (Reuters) - Japan’s ANA Holdings Inc on Tuesday cut its full-year operating income guidance by 15%, citing a decline in cargo demand stemming from U.S.-China trade issues, a slowdown in business demand and intensifying competition in the budget sector.
The country’s largest airline by revenue reported operating income of 78.8 billion yen ($723.07 million) for the six months that ended Sept. 30, down 25% from a year earlier. It lowered its full-year operating income forecast to 140 billion yen, from 165 billion yen previously.
ANA’s international cargo revenue fell by 20.4% and its domestic cargo revenue by 9.9% in the first half because of the trade war and a slowdown in the global economy.
The International Air Transport Association this month reported air cargo volumes globally had shrunk for the 10th consecutive month in August, the longest period since the global financial crisis in 2008.
In the passenger market, ANA said that revenue increased year on year as it expanded in Hawaii and Europe, but that international business travel demand had slowed.
ANA said those trends looked set to continue in the second half of the year, along with intensifying competition in the low-cost carrier sector.
The airline also reported a decline in revenue from its budget carrier operations in the first half as it merged Vanilla Air with Peach Aviation.
$1 = 108.9800 yen Reporting by Jamie Freed in Sydney. Editing by Gerry Doyle