Japan’s Skymark Airlines has revised downward its full-year earnings forecast for the fiscal year ending March 2026.
It now expects operating revenue of 111.0 billion yen (down 6.3 billion yen from the previous forecast), operating profit of 1.6 billion yen (down 0.4 billion yen), ordinary profit of 1.0 billion yen (down 1.1 billion yen), and net profit of 0.1 billion yen (down 1.1 billion yen).
Although the average fare was raised by 6.7% year-on-year, the number of revenue passengers fell by 4.7% due to ongoing sales and promotions by competitors. Despite efforts to curb costs, operating revenue and operating profit are now expected to fall short of the initial forecast. Ordinary profit will also be below the initial forecast because the airline brought forward advance investments, such as payment fees related to procuring new aircraft, after comprehensively considering conditions including inflation and interest rates.
While the dividend forecast remains undecided, the implied dividend based on the revised outlook is 3.8 yen per share.
From the third quarter onward, assumptions are 150 yen to the U.S. dollar and Dubai crude at 75 U.S. dollars per barrel.
