NCA reports net loss in 2Q 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% decrease compared to the same period last year, in which it saw a positive US$55.3 million net income. The loss comes as no surprise after the grounding of NCA’s eleven 747 freighters, which put a stop to nearly all of NCA’s cargo operations outside of ACMI leased capacity.

The carrier’s entire fleet of 747 freighters was grounded in June when a government audit discovered discrepancies in the airline’s maintenance records. In August, the carrier stated it would seek to offload its 747-400Fs and move to a platform consisting entirely of 747-8Fs.

Yesterday, we reported that at least two of the all-cargo carrier’s three still-idled 747-400Fs have been stored at Victorville (VCV) this week, and covered some likely airlines that could end up acquiring the three -400Fs.

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

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