TOKYO April 27, 2007 - ANA Group today posted a record consolidated operating profit of
¥92.1billion on a record consolidated revenue of ¥1.48 trillion for the
twelve months ended March 31, 2007. This represents a year-on-year
improvement of 3.8% and 8.8% respectively. Consolidated net profit for
the period was ¥32.6 billion, the second highest in ANA's history and
22.2% better than the FY2005. The Group's highest net profit was posted in
FY 2000. Costs incurred by the return of leased aircraft resulted in a
6.3% drop in recurring profit to ¥62.5 billion.
"We have seen strong demand for both business and leisure
travel in tandem with the performance of the Japanese economy as whole,"
said Mineo Yamamoto, President and CEO of ANA. "Coupled with improvements
to our network, more flights and new fares, these have contributed to the
excellent results announced today". "However, profit has been squeezed by
a fuel bill that is 31.3% higher than last year. We will keep doing our
best to tackle rising costs, and thank our customers, who have had to
share part of that burden, for their loyalty," he continued.
Air Transportation Segment
ANA Group
consists of airlines, travel, hotel operations and other businesses. On a
consolidated basis, Groups airlines alone accounted for revenue of ¥1.24
trillion and an operating profit of ¥79.7 billion. They carried a record
51 million passengers over 60.7 billion Revenue Passenger Kilometers
(RPK), of which 40.6 billion were domestic and 20.1 billion
international.
Domestic Passenger Services
In spite
of increasingly fierce competition on trunk routes, ANA held its own by
stimulating demand for services with the Tabiwari promotional fare, which
was introduced in April, and a consolidated push to market Okinawa,
Japan's southernmost, sub-tropical island chain. In an effort to increase
its competitive muscle, ANA also upped the number of domestic flights
configured with Super Seat Premium - the equivalent of business class -
and rolled out its SKIP service at airports across Japan. SKIP allows
passengers to check-in on-line anywhere and proceed straight to security,
and onto their flight, without physically passing airport check-in
counters.
All in all, the number of passengers carried on domestic
routes increased 2.2%, despite 2006 being a year with no specific events
to stimulate demand, such as the previous year's Aiichi World Expo, which
buoyed up the number of passengers travelling on domestic services in
2005.
International Passenger Services
For
the period under review, international passenger numbers grew 10.1% to a
record 4.6 million with revenue increasing by 21.5% to ¥278.4 billion,
also a record.
Strong demand for business travel continued unabated
throughout FY2006. In addition, leisure travel demand grew strongly,
stimulated by marketing campaigns for the Ecowari promotional fare and for
destinations in China. The addition of Chicago to ANA's North America
network, more flights to Singapore and China, and the down-gauging of
aircraft to better match demand on flights between Osaka (Kansai) Qingdao
and Xiamen in China, contributed to the successful result in terms of
revenue and passenger numbers.
Travel to, from and via Narita Airport was significantly
improved by the move to new facilities in the South Wing of Terminal 1,
together with ANA's fellow Star Alliance member carriers. Not only were
connecting times shortened, but the whole experience was made more
convenient and simple by the introduction of shared facilities, including
new lounges, and common use self service kiosks equipped with ANA's Smart
e-Service, which allow passengers to collect their boarding pass in a
matter of seconds.
Cargo
Both domestic and international
services saw increased loads and revenue. When combined with mail
services, total revenues exceeded ¥100 billion for the first
time.
On domestic routes, increased economic activity spurring
demand and an increase in the number of late night cargo flights
contributed to a 3.1% increase in revenue and a 3.6% increase in Revenue
Tonne Kilometres (RTK) flown.
International cargo services performed particularly well
with increases in loads, revenue and RTKs in excess of 10% respectively.
This strong performance can be attributed to increased flights to North
America, China and the rest of Asia.
Forecast for FY2007
Strong demand for
air transportation is expected in line with continued economic recovery in
Japan. Taking this and the further differentiation of ANA's products and
services in to consideration, it is expected that the Airline Segment of
ANA Group will secure additional revenue of approximately ¥63.0 billion.
However, as the Hotel Segment will no longer exist, effectively removing
the operating profit of ANA's hotels business, Group consolidated
operating profit is expected to remain around the same level as this
year.
The posting of an extraordinary profit on the sale of
ANA's hotel holdings is expected to boost consolidated net profit to
record levels, despite a forecast extraordinary loss on the accelerated
retirement of aircraft to renew the fleet. The price of fuel is expected
to continue at an elevated level, exerting strong downward pressure on
consolidated operating profit and recurring profit.
For the first time since FY 1992, ANA is expecting to pay
a dividend of ¥5 per share.
For details, please refer to the charts
below. |
