Japanese LCC Peach is reporting its fifth consecutive fiscal year net profit, although profits were down from the previous year.

The airline reported a net profit of ¥3.7 billion ($33.7 million) for the 12 months through March 31, which was its 2017 fiscal year. This total declined 24.6% year-on-year. Operating profit fell by 8.1% to ¥5.8 billion.

Peach is continuing to expand its domestic hub strategy. It made Sendai Airport a hub in FY2017, and in the current fiscal year it plans to establish a hub at Sapporo’s New Chitose Airport.

“This will give us a string of hub airports for service stretching the length of the Japanese archipelago,” CEO Shinichi Inoue said. The carrier’s other hubs are Osaka Kansai International Airport and Okinawa’s Naha Airport.

Peach is a subsidiary of the All Nippon Airways Group. The carrier is due to begin merging with fellow ANA subsidiary Vanilla Air during the current 2018 fiscal year, and this process will continue into FY2019.

Adrian Schofield, avweekscho@gmail.com