News
ANA and JAL post mixed third quarter results
February 3rd 2017
Japan’s two largest carriers, All Nippon Airways (ANA) and Japan Airlines (JAL), have presented their fiscal third quarter results with ANA improving year-on-year while JAL’s performance slipped. Read More »
ANA Holdings, parent of ANA, last week posted a consolidated net profit of ¥86.6 billion ($764 million) for the nine months of its 2016 fiscal year ended December 31; an 18% year-on-year improvement. Revenue for the period was down 2.7% year-on-year, to ¥1.3 trillion ($11.4 billion); 1.7% domestically and 0.7% internationally. The fall off was mitigated by a 4.1% decline in operating expenses, to ¥1.2 trillion.
ANA launched flights to Phnom Penh, Wuhan, Kuala Lumpur, New York and Chicago during the reported period, which resulted in 10.7% more capacity, 11.9% more passengers and a load factor increase of 0.8%, to 75.6%.
In the October-December quarter, ANA’s operating revenues were ¥446.8 billion, down 2.4% from ¥457.8 billion. Operating expenses declined 5% to ¥406.1 billion, which produced ¥40.7 billion in operating income, up 36%. ANA’s fiscal third quarter net profit was ¥29.1 billion, an increase of 51% from ¥19.4 billion in net profit for the comparable period in 2015.
ANA forecast revenue exceeding ¥1.7 trillion for the year. If realized it will be 2.9% lower than last year. ANA’s guidance for full-year net profit remains at ¥80 billion, a 2.4% increase over its 2015 end result.
Rival JAL posted its results on Monday of this week with the oneworld carrier faring far less well during the period than its competitor. JAL’s consolidated operating revenues decreased 4.7% year-on-year to ¥975.4 billion.
Operating expenses decreased by only 1.8%, to ¥838.1 billion yen, operating income declined by 19.2%, to ¥137.3 billion. Attributable net earnings for the third quarter were ¥108.2 billion, a fall off of 24.6% year-on-year.
JAL said “the Japanese economy showed weakness” and the airline also observed “weakness in Asia’s emerging markets, resource-rich markets and China markets”. JAL maintains its full 2016 fiscal year guidance of ¥163 billion.
