Recovery Underway: ANA Reports 1st 6-Month Profit Since 2019

ANA Holdings, the parent of All Nippon Airways (ANA), has released its financial results for the six months ending September 30th. The Tokyo-headquartered aviation powerhouse has seen a positive outcome for the first time since the 2019 financial year (FY).

Better climate

For the first half (H1) of the company’s 2022 financial year, its operating income, ordinary income, and net profit were all in the black. All in all, operating revenue rose by 83.4% year-on-year.

The following table breaks down the overall results for the company while comparing them to FY2021’s results.

Unit: Billion yen (¥1 billion ≈ $6.73 million).

While cargo and domestic operations have contributed to the overall number, international traffic has played a significant hand in the increase in revenue. The total revenue from passenger traffic was ¥161.4 billion, a 430.9% increase from ¥30.4 billion in FY 2021.

In April, Japan removed over 100 countries from its pandemic travel ban list, ushering in a progressive era of international activity for the country following approximately two years of stringent restrictions. The airline is expecting to be even busier in this next period, especially since Japan last month announced the reopening of visa-free travel and the abolishment of daily arrival caps.

Challenges remain for the airline, particularly when it comes to natural events. In September, we saw hundreds of flights get canceled in Japan due to typhoon Nanmadol. Along with this, there are difficulties regarding routes to Europe and China amid the invasion of Ukraine and its subsequent consequences on the aviation market, and China’s ongoing travel restrictions.

Photo: Vincenzo Pace | Simple Flying

A word from the airline

Regardless, ANA’s leadership recognizes the opportunities to be had in this next chapter. It’s gearing up to cater to the expected increase in demand.

Kimihiro Nakahori, ANA EVP and Group CFO, shared the following in a company statement:

“The positive results of the first half of the fiscal year demonstrate the progress we have made since the pandemic began and the determination and effort of our employees to help put the ANA Group in a favorable financial and operational position. The perseverance and dedication of our employees is propelling ANA Group to overcome the challenging times and we look forward to seeing the continued increase as customers once again visit Japan.”

Photo: Vincenzo Pace | Simple Flying

Looking to the future

In practice, ANA is ensuring it has the right support and approach to meet requirements ahead of 2023. Last week, it took delivery of its third Boeing 787-10. The aircraft was assembled nearly two years ago but finally arrived at the airline’s facilities this month.

Moreover, The carrier has launched a series of green initiatives to operate more sustainably. For instance, it is repurposing used cargo plastic across its services, while introducing new sustainable dishes on its menu.

All in all, even though there will be plenty of action for the airline amid this recovery period, ANA is conscious of being mindful of its role across the aviation spectrum. With key Asian markets such as Taiwan and Hong Kong also reopening recently, we can expect a renewed approach across the region.

What are your thoughts about ANA’s financial results? What do you make of the overall progress of the airline? Let us know what you think of the carrier and its journey in the comment section.