Japanese Airline Also Hit Hard by COVID-19... ANA Cuts Salaries by 30% and Offers Voluntary Retirement

Passenger demand drops 90%... All employees unable to receive winter bonuses

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Japan's largest airline, All Nippon Airways (ANA), is implementing bonus cuts to reduce costs. As a result, ANA employees' annual salaries this year will decrease by about 30% compared to before.

According to the Nihon Keizai Shimbun on the 8th, due to a sharp decline in passenger demand caused by the spread of the novel coronavirus infection (COVID-19), ANA, struggling with deficits, decided not to pay winter bonuses to all employees.

Previously, ANA had also reduced the summer bonus to one month's salary.

As of 2018, ANA had been paying bonuses equivalent to six months' salary for both summer and winter bonuses.

About 15,000 ANA employees will see a significant reduction in the summer and winter bonuses they used to receive annually, resulting in an average 30% decrease in annual income.

This measure by ANA is due to the worsening business conditions caused by the impact of COVID-19. From April to June this year, the number of passengers using ANA decreased by 89.8% for domestic flights and 96.3% for international flights compared to the same period last year.

During this period, ANA recorded a net loss of 108.8 billion yen (approximately 1.2 trillion won), the largest in its history.

In addition to the bonus cuts, ANA is also reported to have proposed voluntary retirement to the labor union.

This content was produced with the assistance of AI translation services.