Japanese domestic airline Skymark Airlines reported a net profit of 2.1bn yen ($14.4 million) for the fiscal year, ending March 31, 2025, dipping from 3bn yen ($20.6 million) a year prior.
The company's annual revenues were 108.9bn yen ($747.1 million), dipping slightly from 104.1bn yen ($714.1 million) in the previous financial year.
The company said the aviation domestic market's operating performance “remained robust” due to strong domestic travel demand and continued growth in inbound tourism, despite rising travel costs.
Meanwhile, total operating costs had climbed from 93.4bn yen ($650.8 million) to 100.2bn yen ($687.4 million). Gross profit was 8.7bn yen ($59.7 million), down from 10.7bn yen ($73.4 million).
“In terms of operating expenses, the continued depreciation of the yen, the global inflation, reduction of government support and other factors resulted in an increase in operating expenses as compared to the previous year,” the company read in its report.
The company said it is enacting cost saving initiatives and raising unit fares per passenger to contain expenses.
“Although the unit price per passenger remained favourable from the fourth quarter compared to the initial forecast, it was not enough to make up for the downward trend until the third quarter, resulting in a less operating income compared to the previous year,” the airline continued.
As of the end of the fiscal year, the company's total assets stood at 103.9bn yen ($712.8 million) and total liabilities at 76.8bn yen ($527 million).