Strong travel demand and cost controls helped All Nippon Airways' parent company, ANA Holdings, achieve record operating profit in its latest fiscal year.
ANA's highlights for the 12 months to March 31 included winning inbound demand from Asia and North America, which also saw “long-term strong” yields.
Domestically, ANA was able to capture strong demand for leisure travel, and low-cost carrier Peach also expanded its international routes and achieved record revenue and operating profit.
ANA said, “Passenger demand continues to recover despite concerns about geopolitical risks such as the situation in Ukraine and the Middle East and the impact on the airline industry.''
“Against the change of the new coronavirus infection to a Type 5 infectious disease in Japan, international and domestic passenger services performed well, supported by steady demand for inbound travel to Japan and domestic leisure demand, and operating revenue increased from the previous fiscal year. has increased significantly compared to
ANA's consolidated operating profit for fiscal year 2023 was 208 billion yen ($1.3 billion), doubling from the previous year. Sales increased by 20.4% to 2.1 trillion yen, and net profit nearly doubled to 157 billion yen.
Major airline ANA's international passenger revenue increased by 68% to 728 billion yen, and the number of international passengers increased by 69.4% to 7.1 million. International ASK increased by 48.5%, RPK increased by 56%, and ANA's international passenger load factor increased by 3.7 points to 77.3%.
ANA's domestic passenger revenue increased by 21.8% to 654 billion yen, and the number of domestic passengers increased by 18% to 40 million. Domestic ASK rose 8.7% and domestic RPK rose 18.2%. ANA's domestic passenger load factor increased by 5.7 points to 70.2%.
Low-cost airline Peach also did well this year, with sales increasing 53% to 138 billion yen and passenger numbers increasing 20.2% to 9.3 million. Peach's ASK increased by his 10%, his RPK increased by 29.9%, and his passenger load factor improved by 13.2 points to his 86.7%.
However, cargo was a weak point for ANA.
“In terms of international cargo services, although we made efforts to capture demand between North America and Asia, the volume of international cargo handled and revenue decreased compared to the same period of the previous year due to a decline in market demand in major industries such as semiconductors, electronics, and industrial. . Automotive-related industries,” ANA said.
“Nonetheless, our revenue maintained approximately 1.5 times compared to fiscal 2019. Regarding our route network, we worked to ensure profitability by proactively monitoring demand trends and flexibly adjusting cargo vessel utilization rates. Ta.”
ANA's international cargo revenue decreased 49.5% to 156 billion yen due to a 15.6% decrease in cargo transported.
ANA Holdings expects its revenue to increase over the next year on the back of further growth in overseas travel demand. Operating revenue for fiscal year 2024, which ends on March 31, 2025, is expected to increase by 6.5% to 2.2 trillion yen, but operating income is expected to decrease by 18% to 170 billion yen due to an increase in operating expenses. ing.
