UPDATE 1-Japanese airline operator ANA says considering reducing fleet size

(Adds share price, background, quote from company statement)

TOKYO, Oct 22 (Reuters) - Japanese airline operator ANA Holdings said on Thursday it was considering revamping its business including reducing its fleet size, as it grapples with a plunge in travel demand due to the COVID-19 pandemic.

A source told Reuters earlier that ANA was expected to suffer a net loss of around 500 billion yen ($4.8 billion) this fiscal year and cut its fleet of more than 300 aircraft by about 25 to reduce costs.

“We are considering reforming the business structure, including reducing the number of equipment we have, but we have not decided at this point,” Japan’s biggest airline said in a statement.

Shares in ANA Holdings fell 4.4% as of 0154 GMT, following news of the projected massive losses and cost-reduction plans.

The aviation industry has been hit hard by the global pandemic that led to border closures and travel restrictions, facing a flood of job cuts and reduction in flights. (Reporting by Chris Gallagher; Writing by Ju-min Park, Editing by Kim Coghill and Muralikumar Anantharaman)