Kinki Nippon Tourist Co. said Tuesday it incurred a consolidated pretax loss of 534 million yen in the year to Dec. 31.
The nation's second-largest travel agency posted a profit of 4.52 billion yen in the previous year.
In 2001, its operating revenue shrank 3.7 percent to 119.22 billion yen, affected by slack overseas travel following the Sept. 11 terrorist attacks in the United States.
Its consolidated net profit soared 112 percent to 2.34 billion yen, reflecting fewer reserves set aside for retirement allowances, the travel agency said.
Decreased reserves to cover investment losses contributed to the increased net profit, the firm said.
Group net profit per share stood at 28.78 yen, up sharply from 13.62 yen the previous year.
By segment, operating profit from the travel business came to 26 million yen, down 99 percent from the previous year, while the hotel business incurred a 361 million yen loss compared with a 522 million yen loss the year before.
For the current year, the company forecasts a group net profit of 600 million yen and a group pretax profit of 2.4 billion yen on revenues of 120 billion yen.