SOURCE: All Nippon Airways

January 29, 2010 04:17 ET

ANA Financial Results for the First Nine Months of FY09

TOKYO--(Marketwire - January 29, 2010) - ANA Group today reported its consolidated financial results for the first nine months (April - December inclusive) of fiscal year 2009.

The business downturn which has persisted since the second half of the last fiscal year has been continuing, and passenger demand is taking longer than expected to recover. At the same time, economic stimulus measures in Japan and overseas have had some effect, and there are signs that exports, production and consumer spending are picking up, chiefly in the Asia region. Under these conditions, we have worked to improve profitability through initiatives targeting various types of leisure demand, and through flexible implementation of changes in gauge in response to demand trends.

We also strove to cut costs, implementing our "Emergency Plan for FY09" and "FY09 Emergency Income Recovery Plan" as scheduled.

While we have implemented a range of measures to boost revenues and cut costs, we were unable to offset the slump in demand and fall in unit prices. As a result, we recorded a consolidated operating loss of JPY37.8 billion, a consolidated recurring loss of JPY57.6 billion, and a consolidated net loss of JPY35.1 billion.

Consolidated Financial Performance      unit: billion yen (rounded down)

                1-3Q/     1-3Q/                   %         3Q/   Difference
                2009      2008    Difference  comparison   2009      from
                                                                   3Q/ 2008
Operating
 revenues       923.7    1,107.4    -183.6       83.4      311.9     -42.1
Operating
 expenses       961.5    1,067.0    -105.5       90.1      321.4     -42.1
Operating 
 income         -37.8       40.3     -78.1         -        -9.5       -0
Non-operating
 profit         -19.8      -17.5      -2.2         -        -6.5      +0.7
Recurring
 profit         -57.6       22.7     -80.3         -       -16.1      +0.6
Extraordinary
 profit          -0.3       -3.2      +2.8         -        -0.4      +2.0
Net income      -35.1        9.4     -44.6         -        -9.8      +2.8


Performance by business segment            unit: billion yen (rounded down)

        1-3Q/2009     1-3Q/2008    Difference     3Q/2009      Difference
                                                                  from
                                                                 3Q/2008

      Reve- Operat- Reve- Operat- Reve- Operat- Reve- Operat- Reve- Operat-
       nue   ing     nue   ing     nue   ing     nue   ing     nue   ing
            income        income        income        income        income

Air
 trans-
 porta-
 tion   816.3 -39.9  978.2  37.6 -161.8  -77.6  276.2 -11.2   -35.0   -0.6
Travel
 ser-
 vices  126.9  -0.2  148.0   0.3  -21.1   -0.5   39.3   0.4    -6.2   +0.3
Others  103.3   2.1  113.0   2.3   -9.7   -0.1   34.2   1.3    -3.9   +0.1

*72 consolidated subsidiaries, 5 non-consolidated subsidiaries subject
 to equity method accounting, 19 affiliates subject to equity method
 accounting

Domestic Air Transportation

Conditions were extremely challenging during the period under review. There was a slump in overall demand due to factors including the economic downturn, with companies either restricting or cancelling business travel due to the impact of H1N1 influenza (swine flu).

ANA made various efforts to increase sales, including introducing new "Super Tabiwari" and "Senior Sorawari" fares, expansion of transit fares, promotional campaigns to boost tourism in partnership with regional areas, as well as campaigns targeting Hokkaido and Okinawa.

However, overall the number of passengers and revenue per passenger both fell short of the previous year's levels, leading to a year-on-year decline in sales during the period.

                                                                Same
Domestic Air      1-3Q/    1-3Q/   Differ-      %       3Q/     period %
Transportation    2009     2008     ence   comparison  2009     comparison
                                                                on previous
                                                                year

Revenue
(billion yen)     480.5    549.4    -68.8     87.5     156.1      88.3
Number of
 passengers
(thousand)       30,190   33,226   -3,035     90.9     9,983      91.2
Available seat
 kilometers
(million)        43,589   45,243   -1,654     96.3    14,029      94.9
Revenue
 passenger
 kilometers
(million)        26,759   29,153   -2,394     91.8     8,799      91.6
Load factor (%)    61.4     64.4     -3.0        -      62.7         -

International Air Transportation

Conditions remained extremely challenging. In the first half of the year, the number of passengers fell as the effects of the economic downturn were felt and people refrained from travelling overseas due to the impact of H1N1 influenza. Although passenger demand -- particularly leisure demand -- recovered from the second half, we could not see the recovery in revenue per passenger.

While business demand was sluggish, ANA strengthened its efforts to create leisure demand, including the competitively priced "Super Biji-wari 28" and "Super Eco-wari" fares, as well as charter flights and extra flights during busy periods.

As a result of these efforts, the number of passengers rose year-on-year, but revenue per passenger continued to fall short of the previous year's levels, leading to a year-on-year decline in sales during the period.


                                                                Same
Internationa Air  1-3Q/    1-3Q/   Differ-      %       3Q/     period %
Transportation    2009     2008     ence   comparison  2009     comparison
                                                                on previous
                                                                year

Revenue
(billion yen)     156.5    239.3    -82.7     65.4      55.5      75.4
Number of
 passengers
(thousand)        3,411    3,404       +7    100.2     1,224     114.6
Available seat
 kilometers
(million)        20,131   21,254   -1,122     94.7     6,655      94.7
Revenue
 passenger
 kilometers
(million)        15,016   14,992      +24    100.2     5,266     114.1
Load factor (%)    74.6     70.5     +4.1        -      79.1         -

Cargo

Domestic cargo volumes dropped overall year-on-year due to sluggish demand for general mixed cargo and other factors, although demand for home parcel delivery services using flights centered on Okinawa held steady.

Demand was weak on international routes due to the business downturn, but cargo movements recovered on China routes, thanks to domestic demand stimulus measures in China.

We also worked to create demand within the growing Asia region, launching the "Okinawa Hub Network" in October which links three locations in Japan and five locations in Asia with Naha Airport in Okinawa, using night flights. However, recovery of the unit prices was slow, leading to a year-on-year decline in revenues on international routes.

As a consequence, both domestic and international cargo sales fell short of the previous year's levels.

                                                                Same
Cargo               1-3Q/   1-3Q/   Differ-      %       3Q/    period %
                    2009    2008     ence   comparison  2009    comparison
                                                                on previous
                                                                year

         Revenue
         (billion
           yen)      24.4    25.5    -1.1     95.4       8.5      93.9
         Freight
         carried
Domestic (thousand
          tons)       352     366     -13     96.3       122      94.0
         Ton kilo-
          meters
         (million)    348     356      -7     97.8       121      95.1

         Revenue
         (billion
          yen)       39.0    59.2   -20.2     65.9      16.1      90.7
         Freight
         carried
Inter-   (thousand
national  tons)       303     285     +18    106.4       116     133.0
         Ton kilo-
          meters
         (million)  1,267   1,323     -55     95.8       447     109.7

Outlook for FY2009 (April 1, 2009 - March 31, 2010)

In the outlook for full-year consolidated earnings, the environment remains challenging, and the airline sector continues to face difficult times. On the other hand, for international flights there were signs of a recovery in business demand as well as leisure demand, and the sluggish demand for domestic flights seems to have hit bottom. We will continue to work towards achieving improvements in our financial position, and consequently, at this point we will not be revising our consolidated earnings forecast.

                                           unit: billion yen (rounded down)
Outlook for FY09        Revised Forecast
                        FY2009                   FY2008       Difference
                        (as of Oct 30, 2009)

Operating Revenues         1,260.0               1,392.5        -132.5
Operating income             -20.0                   7.5         -27.5
Recurring profit             -45.0                   0.0         -45.0
Net income                   -28.0                  -4.2         -23.7

NOTE: For the detailed report, please refer to the attached file.

http://www.rns-pdf.londonstockexchange.com/rns/3304G_1-2010-1-29.pdf

Notes for Editors:

- All figures and percentages are rounded down

- All comparisons are year-on-year

- All figures are given on a consolidated Group basis

- ANA Group airlines comprise: All Nippon Airways (ANA), Air Nippon (ANK) Air Japan (AJX), Air Nippon Network (A-Net), Air Central (CRF), Air Next (NXA), ANA & JP Express (AJV)

- 3Q/ 2008 figures are given for reference only

Contact Information

  • Contact:
    ANA Public Relations
    +81-(0)3-6735-1111