News
Japan’s leading carriers report solid profits
February 5th 2016
Japan’s All Nippon Airways (ANA) and rival Japan Airlines (JAL) posted solid profit gains for the first nine months of fiscal year 2015, citing robust demand, a weak yen and the record low oil price. Read More »
ANA parent, ANA Holdings, reported a 73.3 billion yen ($609 million) net profit for the nine months to December 31, 2015, up 40% year-on-year, on 5.3% improved operating revenue. ANA’s international passenger business did particularly well, with revenues growing 10.5% during the period.
Following the profit announcement, ANA Holdings changed the group’s full year profit forecast, to March 31, 2016, to 65 billion yen, up 25% on the 52 billion yen announced in April 2015. ANA is projecting its ‘ordinary’ income will grow to about 20 billion yen, due to the increase in operating income from strong international passenger revenue and revenue from the sale or disposal of aircraft and parts, among other factors. The growth in net income comes “as a result of the adjustments to extraordinary gains/losses and tax expenses”, ANA said.
In its earnings report, ANA acknowledged “some concern about the future in regard to the risk of downward pressure on the Japanese economy due to the economy in China and other emerging countries in Asia”.
When it announced the results, ANA also confirmed the acquisition of three A380s for delivery from 2019. These will be fitted with four-class, 544-passenger cabins, and deployed on services to Hawaii where rival JAL holds the larger market share.
JAL said its operating revenues in the third quarter were 1,023.4 billion yen (+ 0.1% year-on-year) and operating expenses came in at 853.3 billion yen (-3.5%). Operating income was 170.0 billion yen (+23.0%), ordinary income was 170.4 billion yen (+24%) and net income attributable to owners of the parent was 143.6 billion yen (+20.1%).
“Passenger traffic increased by capturing robust demand from inbound travellers especially on North America, China and Southeast Asia routes,” JAL said in a statement.
“The Japanese aviation industry is enjoying a sharp decline in oil prices and a growing number of visitors to Japan, which continued to sustain its bottom-line,” said Hiroshi Hasegawa, an analyst at SMBC Nikko Securities. “If oil prices remain low for now, JAL and ANA will likely show sizable profit gains for the next fiscal year.”
