Business Round-Up
ANA and JAL report record profits
May 1st 2013
All Nippon Airways (ANA) reported a record profit for the fiscal year to March 31, defying the negative impact of the grounding of its B787 fleet in the final quarter and the stuttering recovery of the global economy. Read More »
ANA Holding’s CEO, Shinichiro Ito, announced the company achieved a net profit of 43.1 billion yen (US$449.8 million) for the 2012-213 year, an increase of 15 billion yen over the previous 12 months. Recurring profit reached a record high of 76.9 billion and operating revenue climbed 7% for the year to 103.8 billion yen.
“We were successful in attracting more passengers from home and abroad and in responding to changes in the airline environment including the expansion of airport capacity in the Tokyo metropolitan area, further airline liberalization and the entry of low-cost carriers to the market,” Ito said.
“We responded flexibly to minimize the flight cancellations affected by the grounding s of the B787 from January, which minimized the impact on profits.”
ANA’s international revenue increased by 8.8%, to 348.3 billion yen, for the year after passengers travelled increased by 6.7%. Growth was supported by several successful marketing campaigns, including “Is japan Cool”, better transit systems for Asia-North America ANA passengers, new routes to the U.S. and the joint venture with Lufthansa. Domestic revenue rose by 2.2%, assisted by new services between Narita-Niigata, Itami-Fukishima and Haneda-Iwakuni and the resumption of services on five domestic routes. AirAsia Japan, an ANA/Air Asia joint venture launched last August reported a load factor of 63% on its domestic network and 61.9%, or 60,000 passengers, for its regional routes. ANA will diversify into aviation related business in the coming year in Asia and identify opportunities for ANA and its low-cost subsidiaries. With the resumption of B787 services expected this month, ANA said its priority will be “to restore the trust and confidence of our passengers in the safety and performance of the Dreamliner”.
At press time, Japan Airlines (JAL) reported a net profit of 171.6 billion yen for the fiscal year to March 31, although the profit was 8% lower than the 186.6 billion yen profit of the previous 12 months. JAL beat its forecast of a 163 billion profit and forecast a net profit of 118 billion yen for the current fiscal year.
