News
ANA HOLDINGS INC first-half net profit declines 38%
November 9th 2018
ANA HOLDINGS INC (ANAHD) has posted a first-half net profit of JPY73.7 billion (US$652 million). Read More » While a good result, the airline group’s performance was down 38% compared with the year ago period. ANAHD’s first half performance, to September 30, was affected by a number of severe typhoons and earthquakes in Japan. It also had to deal with the grounding of B787s undergoing engine replacement work which was affecting the group’s passenger numbers and revenue. ANAHD also is facing higher fuel costs and expenses related to its investments.
ANA’s first-half operating profit was down 8.6%, to JPY105.2 billion. Operating costs increased 7.2%, outbalancing 5.4% in revenue growth. The group’s domestic revenues dropped 0.8% and capacity decreased 2.3%.
ANA’s weaker domestic performance was offset by a 12% increase in international passenger revenue, which the airline said was the result of strong business demand originating in Japan and “robust inbound demand from countries such as China”. International capacity increased 4.6%. ANA’s international load factor in the first half was up 1.6%, to 77.4%.
In October, the airline announced Vienna would be its seventh destination in Europe, starting from February 17. The daily route will be part of the airline's joint venture with Austrian Airlines. ANA flies daily to Brussels, Dusseldorf, Frankfurt (double daily), London, Munich and Paris.
ANA has left its full-year financial guidance unchanged “because the currently strong air travel demand is expected to remain steady despite the cancellation of flights caused by inspection and maintenance of engines and the impact of numerous natural disasters in the six months ended September 30,” the airline said on Monday.
ANAHD is projecting a net profit of JPY102 billion for the full year, down 29% from JPY143.8 billion posted the previous year.
Last week, rival JAL reported a 2.3% decrease in first-half operating profit, to JPY96.8 billion (US$855 million), as a result of a 23% jump in fuel costs. The carrier’s revenue for the six months to September 30 grew 8.4%, to JPY750 billion. JAL’s attributed net profit declined 5.9% during the period, to JPY73.3 billion.
Separately, ANA has signed a Flight Hour Services (FHS) contract with Airbus for its incoming fleet of three A380s. ANA will start taking delivery of the A380 in 2019.
