ANA Holdings Inc., Japan’s largest airline by sales, fell the most in more than 15 months in Tokyo trading after cutting its full-year profit outlook as the yen’s drop against the dollar pushed up fuel costs.
ANA dropped as much as 6.1 percent, the most since July 2012, to 202 yen and traded at 206 yen as of 9:45 a.m. in Tokyo. Goldman Sachs Group Inc. cut its share-price estimate for the carrier to 195 yen and CLSA Ltd. reduced its rating to underperform, the equivalent of sell. The carrier reported earnings yesterday after the close of trading in Tokyo.
The Tokyo-based company, which pays for fuel in dollars, cut its net income forecast by more than half for the year ending March after the yen slid more than 20 percent against the dollar last quarter from a year earlier. The carrier, the world’s largest operator of Boeing Co. 787 aircraft, also said the grounding of the Dreamliner jet earlier this year due to lithium-ion battery problems slowed down expansion plans.
“ANA is unattractive versus regional peers,” Paul Wan, an analyst at CLSA, wrote in a report today. “We see limited upside.”
The carrier forecast net income of 15 billion yen ($152 million) in the year ending March 31, compared with an earlier projection of 45 billion yen, it said in a statement yesterday.