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ANA Reports Profitable First Six Months to Fiscal Year 2007; Record Revenue on Strong International Growth.

Tokyo, Japan, Oct 31, 2007 - (JCN Newswire) - ANA Group today reported a record consolidated net profit of JPY 105.5 billion on record revenue of JPY 763.2 billion for first six months of fiscal year 2007, ended September 30, a 217% and 1.4% increase respectively. Net profit was boosted considerably by the sale of ANA Group's hotel assets on June 1 this year and is the highest ever posted at the mid-term point. Operating profit fell 2.5% to JPY 67.0 billion, squeezed by the rising cost of jet fuel and the loss of income from the hotel business.

"This is a pleasing set of results for ANA Group, and demonstrates that our strategy to crate a solid financial base capable of weathering changes in the market is bearing fruit," said Tomohiro Hidema, ANA executive vice president Finance & Accounting. "We posted our largest ever consolidated revenue at the mid-year point, despite losing the revenue of our hotel business which last year accounted for around JPY 30 billion for the first half of the fiscal year. Furthermore, in spite of a JPY 12 billion rise in costs, mainly attributable to fuel, our operating profit was only affected to the tune of JPY 1.6 billion. This is thanks to a strong performance by our international passenger and cargo air transport services, which both showed a revenue increase of around 20%, to holding our position in the domestic market and to our efforts to control costs," he continued.

Consolidated Financial Performance
 (billions yen)
 FY 2007 H1 FY 2006 H1 Diff. %
Revenue 763.2 752.8 10.4 1.4
Operating costs 696.1 684.0 12.0 1.8
Operating profit 67.0 68.7 (1.6) (2.5)
Non-operating revenue (-10.3) (-10.7) 0.4 --
Recurring profit 56.7 57.9 (1.2) (2.1)
Extraordinary profit 112.0 (-1.1) 113.1 --
Net profit 105.5 33.2 72.2 216.9

ANA Group consists of airlines, travel and other businesses, and in the previous financial year also owned and operated a chain of hotels. Each business segment performed as follows.

Performance by business segment (consolidated)
 (billions yen)
 FY 2007 H1 FY 2006 H1 Difference
 Op. Op. Op.
 Rev. profit Rev. profit Rev. profit
Air transport 666.1 62.7 629.3 60.7 36.8 2.0
Travel 113.9 1.8 109.0 2.4 4.8 (0.5)
Hotel -- -- 33.4 3.1 (33.4) (3.1)
Others 97.3 2.5 99.5 2.3 (2.1) 0.1

Domestic Air Transport

In the first three months of the year, local and Upper House elections coupled with a more competitive environment affected the number of passengers ANA carried. Although demand for leisure travel rallied towards the end of the period under review, a drop of 1.5% was recorded in the number of passengers travelling ANA for the entire six months. Notwithstanding, a revenue increase for the period was posted, attributed to: fare revisions in April and greater flexibility in the setting of discount fares; improvements to ANA's network - including the cutting of unprofitable routes, the more efficient assignment of aircraft to profitable routes and the start of code-sharing operations with Starflyer; and the roll-out of revolutionary SKiP system for boarding aircraft, which does away with the need to check-in, thus facilitation customer travel.

Domestic Air Transport Performance
 (billions yen)
 2007 H1 2006 H1 Diff. %

Revenue 381.2 372.9 8.2 2.2
No of passengers (x1,000) 23,036 23,393 (357) (1.5)
Available Seat km (millions) 31,700 31,460 240 0.8
Revenue Passenger km (millions) 20,168 20,471 (303) (1.5)
Load factor (%) 63.6 65.1 (1.5) --

International Air Transport

The number of passengers travelling on international flights grew by 8% compared with the previous term. More flights were introduced on the Narita-Guangzhou route, aircraft were down-gauged on Nagoya-Shanghai to better match aircraft size to demand, and the fuel-efficient Boeing 777-300ER was introduced on alternate days onto the Tokyo-London route. As such, ANA was able to reduce costs and increase revenue generating capacity.

In September, ANA entered the rapidly growing market for travel between India and Japan with its six times per week Tokyo-Mumbai service ANA Business Jet using a Boeing 737-700ER in an all-business class configuration. All in all, 17% increase in revenue was reported.

International Air Transport Performance
 (billions yen)
 2007 H1 2006 H1 Diff. %

Revenue 161.2 138.2 23.8 17.3
No of passengers (x1,000) 2,425 2,239 185 8.3
Available Seat km (millions) 14,113 12,839 1,274 9.9
Revenue Passenger km (millions) 10,764 9,996 768 7.7
Load factor (%) 76.3 77.9 (1.6) --


Domestic revenue and cargo volumes remained at almost the same levels as the previous term, despite greater competition. Internationally, ANA bolstered its fleet of four dedicated freighter aircraft with two wet-leased from ABX Air of the USA, increasing capacity by more than 70% year-on-year. As a result, volumes were up by nearly 35% and revenue by 20%.

Cargo Performance
 (billions yen)
 2007 H1 2006 H1 Diff. %
 Revenue 15.0 15.1 0 (0.5)
 Freight carried (1,000 tonnes) 225 224 2 0.8
 Tonne Kilometer (mil) 217 216 1 0.3

 Revenue 34.2 28.5 5.7 20.0
 Freight carried (1,000 tonnes) 159 128 31 24.3
 Tonne Kilometer (mil) 778 577 200 34.7

Outlook for FY2007

No change is expected from the forecast announced on April 27 this year.
 (billions yen)
 FY 2007 full year forecast

Revenue 1,490.0
Operating profit 79.0
Recurring profit 46.0
Net profit 64.0

ANA Group airlines comprise: All Nippon Airways (ANA), Air Nippon (ANK) Air Japan (AJX), Air Nippon Network (A-Net), Air Central (CRF).

About All Nippon Awys Ltd.

All Nippon Airways (TSE: 9202), or ANA, is the seventh largest airline in the world by passenger load (IATA ranking) and Japan's largest domestic carrier. It is listed on the Tokyo Stock Exchange with a market capitalisation of US$8.1bn (JPY932bn) as of 29 Sep 2006. Carrying almost 50 million passengers every year to 50 destinations in Japan and 23 cities throughout Asia, Europe and the United States, ANA is recognized for outstanding passenger service both on the ground and in the air. In the greatest Japanese tradition of mixing hospitality with high technology, personalised a la carte service complements state-of-the-art entertainment systems and the latest in cabin design. ANA has been in the airline business for over 50 years, and combined with ANA Group companies, its activities extend across a host of complete travel and aviation-related services. For more information, please visit

Source: All Nippon Awys Ltd.

ANA Public Relations
Rob Henderson
Tel: +81-3-5756-5683

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Publication:JCN Newswires
Geographic Code:9JAPA
Date:Nov 1, 2007
Previous Article:JAL Applies for Revision of International Cargo Fuel Surcharge.
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