NCA reports net loss in Q2 due to freighter grounding

Nippon Cargo Airlines (NCA) reported a US$86.1 million second-quarter loss in net income in its 2018 interim release – an over 250 percent decrease compared to the same period last year in which it saw a positive US$55.3 million net income – which was to be expected after the grounding of its eleven 747-400 freighters that blocked the carrier’s trans-Pacific revenue-stream for four months.

The carrier’s fleet of 747 freighters  – three of which were -400s, eight of which were -8s – were grounded in June when a government audit discovered discrepancies in the airline’s maintenance records and paused its trans-Pacific routes.

In August, the carrier stated it would seek to offload its 747-400Fs and move to a platform consisting entirely of 747-8Fs.

Our sister publication, Cargo Facts, reported yesterday that at least two of the all-cargo carrier’s three still-idled 747-400Fs have been stowed at Victorville (VCV) this week, lending support to the rumors.

NCA is moving forward to re-establish its last remaining routes on the 747-8Fs– Tokyo-Los Angeles (NRT-LAX) and NRT-Frankfurt/Hahn (HHN) as soon as possible.

The Japan-based carrier forecasted that by end of 2019, it will be about US$52.7 million in the hole, measured by net income.