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Peach Aviation eyes FY 2014 profit, sales gains with enough pilots

June 19, 2014

Japanese budget carrier Peach Aviation Ltd. said Thursday it expects to post net profit and sales gains in the current fiscal year ending next March, as it does not plan further flight cancellations from November with the required number of pilots secured.

Peach's revenue is likely to be dented by 3 billion yen as it plans to cancel around 2,000 flights between May and October due to a lack of pilots.

But the company said its business scale is likely to surpass that of last year even in the first fiscal half, and that it plans to further improve its performance in the latter half. Its sales for fiscal 2014 are expected to increase about 10 percent from the previous year, according to the budget carrier.

For fiscal 2013 ended in March, the airline's sales more than doubled from the previous year to 30.60 billion yen on increased demand for international flights by foreign passengers.

Peach moved into the black for the first time since its establishment in February 2011, logging a net profit of 1.05 billion yen compared with the previous year's loss of 1.21 billion yen.

The company achieved an average load factor of 83.7 percent, up 6 percentage points from the year before, and flew 3 million revenue passengers.

Junya Okamura, chief financial officer and legal director of Peach, said at a press conference in Osaka, "The services of low-cost carriers have been spreading. We saw a bigger-than-expected demand."

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Source: Japan Economic Newswire

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