Business Round-Up
ANA, Garuda beating the odds
December 1st 2012
Recession or no recession, All Nippon Airways (ANA) must be the envy of its peers following the publishing of its interim financial results to September 30. Read More »
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| All Nippon Airways: record revenue and operating income |
Its operating revenue of 753.2 billion yen (US$926.45 million) and operating income of 75.3 billion yen was the airline’s highest on record. Recurring profit of 63.4 billion yen was also a record. Net income for the six-month period was 36.9 billion yen.
However, operating revenue is expected to fall 30 billion yen below pre-financial year forecasts as a result of the impact of anti-Japanese demonstrations in China over territorial issues.
Resurgent Japan Airlines (JAL) also was in the black for the six months to September 30. Operating revenue, expenses and income for the six months rose 5.7%, compared with the same period last year, to 634.2 billion yen, 522 billion yen and 112.1 billion yen respectively. Net income increased 2.4% to 99.7 billion yen.
Like its rival ANA, JAL is expecting the anti-Japanese protests in China to hit its revenue for the full year. This is estimated at five billion yen, but this drop off will be offset by an expected increase in net income of 10 billion yen.
The Singapore Airlines (SIA) Group saw its profit fall 30% to S$168 million (US$136.58 million) for the six months to September 30 when compared to the same period last year.
This was mainly attributable to lower non-operating items as the airline benefitted from a higher surplus on the disposal of aircraft and spare engines last year, said an SIA statement. Group operating profit was up S$8 million, or 6% year-on-year, to S$142 million.
The airline recorded an operating profit of S$169 million for the six months compared with a $53 million profit in 2011; subsidiary carrier SilkAir posted a profit of S$37 million (S$34 million profit in 2011); SIA Cargo lost S$99 million (S$31 million loss in 2011); and SIA Engineering made a profit of S$66 million (S$69 million in 2011).
Garuda Indonesia is proving to be one of the Asia-Pacific’s most buoyant airlines in these difficult economic times.
Its operating revenue in the third quarter was up 14.4% to US$2.39 billion, compared with the $2.08 billion earned in the same period last year. Operating income rose 140.4% to $92.75 million, while comprehensive income increased 108.2% to $60.8 million year-on-year.
Garuda saw passenger and cargo volumes increase significantly. Indeed, compared to a lacklustre global cargo industry, the carrier recorded an 18.7% rise in cargo during the third quarter compared to last year.
After six consecutive quarters of losses, Malaysia Airlines (MAS) posted a profit before tax of 39.10 million ringgit (US$12.82 million) for the third quarter ended Sept 30. This contrasted with a pre-tax loss of 461.54 million ringgit in the corresponding quarter in 2011. Revenue declined to 3.47 billion ringitt from 3.56 billion ringgit.
MAS has reached agreement with state-owned Turus Pesawat for financing of up to 5.31 billion ringgit (US$1.72 billion) to purchase six A380-800s, one A330-200 freighter and one A330-300. MAS took delivery of its third A380 last month.
China’s top three carriers saw declines in their third quarter profits as a softening in air travel demand and foreign exchange losses hit their bottom lines.
Flag carrier, Air China’s profit declined 16% year-on-year to 3.17 billion yuan (US$508 million) from 3.8 billion yuan a year earlier. Air China’s first half net profit declined 77%.
China Southern Airlines’ third quarter profit dropped 29% to 2.22 billion yuan. China Eastern Airlines saw its third quarter profit fall 20% to 2.63 billion yuan, compared with 3.31 billion a year earlier.
India’s major carriers are still swimming in red ink, but for two of their number the losses were cut in the second quarter.
Jet Airways reported a 16% increase in operating income to $783 million compared with the same period a year earlier. The improved performance, attributed to reduced capacity in the market and higher yields, led to a lower net loss of $19 million over $146 million year-on-year.
Meanwhile, SpiceJet, India’s second largest low-cost carrier, reduced its second quarter losses by 32%. Net losses fell to $30 million compared to $48 million year-on-year.
The same could not be said for Kingfisher Airlines. Currently grounded and desperately looking for investors, its losses widened in the second quarter to around $150 million compared with a $93 million loss a year earlier. Its revenue fell to $40 million from $310 million in 2011 as many of its aircraft were returned to leasing companies.
* Qantas Airways unveiled a plan last month to repurchase A$100 million (US$104 million) of its shares and repay A$650 million in debt ahead of schedule. Its chief executive, Alan Joyce, has embarked on a five-year plan to restructure the airline, focussing on its loss-making international business.
