Japan’s ANA is canceling 3,500 job cuts in 3 years as it expects virus problems to persist: Yomiuri.

TOKYO (Reuters) – ANA Holdings Inc (T: 9202) plans to cut around 3,500 jobs in three years as Japan’s largest airline prepares for the biggest annual loss ever due to a fall in demand due to the coronavirus pandemic, Yomiuri daily newspaper reported.

The job losses are part of ANA’s broader restructuring plan to be announced on Tuesday as it aims to cut fixed costs in anticipation of a continued decline in travel demand, Yomiuri said on Sunday.

ANA, which had 43,500 employees in the group last year, plans to achieve its job reduction target by the end of March 2023 through outplacement programs and a hiring freeze.

ANA representatives could not be reached immediately.

As a short-term move, ANA is considering temporarily posting some of its workforce to several other companies, including Toyota Motor Corp (T: 7203), and selling 30 of its expensive wide-body aircraft, the Yomiuri added.

A net loss of around 500 billion yen ($ 4.8 billion) is forecast for the fiscal year through March. ANA used billions in loans and a government tourism campaign to help weather the slump in air traffic.

Separately, the Nikkei business newspaper reported on Sunday that ANA’s local rival, Japan Airlines Co (T: 9201), is expected to post an operating loss of around 85 billion yen for the July-September quarter.

JAL was in the red when passenger traffic on international flights fell 97% in the quarter, the Nikkei said.

Faced with strong headwinds in the industry, domestic airline Star Flyer Inc (T: 9206) is in talks with Japanese private equity firm Advantage Partners and others to raise around 10 billion yen in capital through new bond issuance Japanese media reported late Saturday.

ANA is the largest shareholder in Star Flyer with a stake of 18%.

($ 1 = 104.6900 Yen).

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