Japan's ANA skids toward record $4.8 bln loss

ANA will take drastic action to cope with a forecast loss of around $4.8 billion, the company said Tuesday (October 27).

The Japanese airline says it will retire more than a tenth of its fleet and delay two aircraft orders.

It will also move over 400 workers to different companies, while asking others to accept pay cuts or unpaid leave.

The drive to rein in costs comes as airlines and travel companies struggle to survive this year's collapse in air travel.

Overall, ANA said it swung to an operating loss of almost $2.7 billion for the six months ended Sept. 30, and projects it will lose $4.8 billion for the year to March 31.

Like other airlines, ANA is burning through cash to keep jets flying even with very few passengers.

Japan had previously banned all entry into the country, but has recently started to allow business travelers and foreign residents to visit - but on the condition they quarantine for two weeks.

Most overseas tourists are still not allowed in.

Because of this, ANA said it would retire 35 planes, including 22 Boeing 777 widebodies.

It will also delay taking one new 777 and one Airbus A380 superjumbo.

All that still leaves the carrier facing a severe hit.

On Tuesday ANA confirmed it had secured $3.8 billion in subordinated loans from state-backed and private lenders to get it through the current downturn.