Japanese airline Star Flyer has revised downward its earnings forecast for the fiscal year ending March 2026.
The company now expects revenue of 44.65 billion yen (a decrease of 760 million yen from the previous forecast), operating profit of 900 million yen (down 1.25 billion yen), and ordinary profit of 300 million yen (down 1.84 billion yen), with net profit also forecast at 300 million yen (down 1.46 billion yen).
Although revenue is expected to be roughly in line with initial assumptions, the Japanese yen has weakened significantly compared to the assumed exchange rate of 145 yen to 1 U.S. dollar, leading to higher costs such as fuel expenses and aircraft leasing fees. In addition, the recognition of certain aircraft lease contracts as finance leases for accounting purposes has resulted in foreign exchange losses.
