TOKYO, May 1 (AFP) – Japan's All Nippon Airways (ANA) reported Friday a net loss of 57.4 billion yen ($610 million) for the fiscal year to March, citing weak air travel demand, despite its cost cutting efforts.

The figure was smaller than the company's own net loss projection of 65 billion yen announced in March.

ANA's operating loss reached 54.2 billion yen, compared with an operating profit of 7.6 billion a year ago. Sales fell 11.8 percent to 1.23 trillion yen.

The airline called the business climate ''severe''.

For the year to March 2011, ANA said it expected to return to the black, forecasting a net profit of 5.0 billion yen and operating profit of 42.0 billion yen, on sales of 1.36 trillion yen.

High oil prices, movement in foreign exchange rates and Japan's falling consumer prices continued to deteriorate business conditions ''to an extent not experienced in recent years,'' ANA said in a statement.

''In the midst of the global recession brought on by the financial crisis in the United States, aviation demand also dropped due to the effects of (swine flu) in the first half of the year,'' ANA executive vice president Tomohiro Hidema said in the statement.