Nippon Cargo Airlines (NCA), a subsidiary of Japan's NYK group, has recorded a worse-than-expected loss of US$152 million for the year ending March 31.

This comes after airline suffered a loss of $88 million the previous financial year.

The company blames the result on "great difficulties" in establishing independent flight operations, pointing to stiffer competition in the air cargo market as well as higher maintenance costs for aircraft.

The parent company expects NCA to see a return to profit in 2009 by adding new flights to its global network, particularly in Asia. This goal will be facilitated by introducing the next-generation Boeing 747-8 Freighter from July and replacing its aging fleet with new aircraft by next summer.

A report by UK Aircargo News said that in a bid to cut costs NCA will also begin servicing some of its own planes from July and terminate its maintenance contract with All Nippon Airways in the fiscal year that starts April 2008.