ANA HOLDINGS Financial Results
for the Year Ended March 31, 2023

  • • For the first time in three years since the global pandemic started, ANA HOLDINGS INC. is pleased to announce a return to profit since the fiscal year ended March 31, 2020.
  • • Operating income significantly exceeded the initial target, as the increase in operating revenue of 687.1 billion yen surpassed the 394.0 billion yen increase in operating expenses.
  • • For the current fiscal year, ANA HOLDINGS INC. will continue to expand growth based on our new cost structure, and steadily raise profits by expanding sales.

TOKYO, April 27, 2023 -ANA HOLDINGS INC. (hereinafter "ANA HD") today reports its financial results for the year ended March 31, 2023.

Overview
During fiscal year 2022 (April 1, 2022 - March 31, 2023; hereinafter the "year ended March 31, 2023"), led by a strong recovery in domestic and international travel demand and sustained cost management initiatives, operating revenue increased to 1,707.4 billion yen, which marks a significant increase from the previous fiscal year. As a result, ANA HD recorded an operating income of 120.0 billion yen, ordinary income of 111.8 billion yen, and net income attributable to owners of the parent was 89.4 billion yen.
"The ANA Group is pleased to announce our strong financial performance that marks the first profitable full year of operations since the pandemic began three years ago," said Kimihiro Nakahori, Executive Vice President and Group Chief Financial Officer. "These results are a testimony to the dedication of our employees, loyalty of our customers and support from our stakeholders that point towards a promising future."

Air Transportation
The airline industry is rapidly improving and passenger demand increased significantly due to the gradual easing of entry restrictions in various countries throughout the fiscal year. In terms of expenses, although operation-related costs increased with the recovery in demand and the scale of operations expanded, ANA HD worked to cut costs through the execution of structural business reforms, while being supported by various tax exemptions and government subsidies.

  • 1. International Passenger Service (ANA)
    • ・As the entry restrictions in various countries were gradually relaxed, we actively captured demand for connections between North America and Asia, which had been leading the recovery from an earlier stage. In addition, as Japan's entry restrictions became eased after September, we worked to capture the outbound business demand from Japan as well as the demand for inbound travel to Japan. As a result, both passenger volume and revenue significantly exceeded those of the previous year.
    • ・For our route network, we increased the number of flights on North America and Asia routes to/from Narita Airport in the first half of the year to capture demand for connections between North America and Asia. Further, with a focus on Haneda Airport, we increased flights from January this year on routes such as the Haneda - Delhi and Haneda - Sydney routes, to respond to recovering demand for flights departing to/from Japan.
  • 2. Domestic Passenger Service (ANA)
    • ・Led by the trend to prevent the spread of infection and simultaneously balance the recovery of socioeconomic activities, leisure demand significantly recovered after the second half of the year, supported by the Japanese government's subsidies to boost leisure travel. Also, with efforts to attract new customers and stimulate demand such as the "7,000 yen" sale on domestic routes, a special campaign to commemorate the 70th anniversary of ANA, passenger volume and revenue both exceeded those of the previous fiscal year.
    • ・From the second half of the fiscal year, we fully utilized the Boeing 777 aircraft with the refurbished engines, and aggressively ramped up operations utilizing the larger aircraft during the weekends, New Year's and spring break season to capture recovering demand.
  • 3. Cargo Service (ANA)
    • ・Together with the decline in demand for auto-related parts and other factors, ANA reduced the number of cargo-dedicated flights on passenger aircraft, in order to strengthen operations for passenger demand. As a result, the amount of freight carried decreased from the previous fiscal year, while ANA's efforts to actively capture cargo at a higher unit-price such as large-sized special commercial products helped maintain a high unit price level.
  • 4. LCC (Peach Aviation)
    • ・In response to eased travel and border restrictions in various countries, Peach expanded the scale of its domestic flight operations and resumed operations on international routes to capture leisure and inbound demand.
    • ・For the route network, Peach expanded the scale of operations on domestic routes with an increase in the number of flights on the Narita - Chitose and Narita - Fukuoka route in response to increasing demand. For international routes, Peach expanded operations to capture demand by resuming the Kansai - Seoul route in August, followed by the Kansai - Taipei and Kansai - Hong Kong routes, and introducing the new Chubu - Taipei route in March this year.
  • 5. Others
    ・Other revenue from the Air Transportation business was 144.7 billion yen (up 6.9% year-on-year). This includes revenue from the mileage program, in-flight sales revenue, revenue from maintenance contracts and other sources.

Airline Related, Travel Services, Trade and Retail, and Others

  • 1. Airline Related
    • ・With the easing of Japan's border restrictions and recovery in travel demand, there was an increase in contracted airport ground support services such as boarding and baggage loading and in-flight meal-related services. As a result, revenue increased to 247.1 billion yen (up 19.5% year-on-year), and operating income was 2.3 billion yen (operating loss of 0.6 billion yen during the same period of the previous year).
  • 2. Travel Services
    • ・For travel services, as demand for domestic travel recovered steadily and Japan's travel support program was introduced in the second half of the fiscal year, sales of dynamic package products as well as "ANA Traveler's Hotel" products, which allow customers to use miles for transactions, had a strong performance. As for overseas travel, we resumed tours to Hawaii in April for the first time in about two years, and gradually expanded destinations throughout the year. As a result, revenue increased to 73.8 billion yen (up 59.5% year-on-year), and operating loss was 0.2 billion yen (operating loss of 2.1 billion yen during the same period of the previous year).
  • 3. Trade and Retail
    • ・As aviation demand gradually recovered, sales increased at ANA FESTA shops in airports and the handling volume of semiconductors for electronics businesses increased, and revenue outperformed the same period of the previous year. As a result, revenue increased to 103.2 billion yen (up 26.4% year-on-year), and operating income was 3.5 billion yen (up 539.5%).
  • 4. Others
    • ・While there was an increase in lounge operations and quarantine-related screening services, revenue decreased due to a large-scale property sale in the previous period. As a result, operating revenue was 38.0 billion yen (down 0.2% year-on-year), and operating income was 0.5 billion yen (down 56.8% from the same period a year ago).

Outlook for FY2023 (April 2023 - March 2024)

  • ・Led by leisure travel demand, the domestic market is expected to further recover, and for international routes, recovery of inbound travel to Japan and business demand is expected to continue. We will continue to closely monitor geopolitical risks such as the situation in Ukraine as those issues may impact operations.
  • ・Revenue is expected to increase significantly with growth in international passenger service of 183.5 billion yen and domestic passenger service of 100.4 billion yen. However, international cargo is expected to decline by 90.0 billion yen, and ANA HD expects operating expenses of 60.0 billion yen, due to an increase in the business operations, cost increase due to inflation as well as investments in human resources. We will strive to achieve profitability and expand the revenue top line through the efforts of our renewed cost structure and business model.

Consolidated financial forecast for the fiscal year ending March 31, 2024 is as follows. We regret to announce that at this moment, dividend payments for this fiscal year are yet to be decided; ANA HD recognizes that the immediate task at hand is to strengthen our financial base, and we will raise our efforts to resume dividend payments at an early timing.

  • Contact:
    ANA Corporate Communications, TEL +81-3-6735-1111, publicrelations@ana.co.jp

About ANA HOLDINGS
Founded in 1952 with just two helicopters, All Nippon Airways (ANA) has grown to become the largest airline in Japan. ANA HOLDINGS Inc. (ANA HD) was established in 2013 as the largest airline group holding company in Japan, comprising 69 companies including ANA and Peach Aviation, the leading LCC in Japan.

ANA is a launch customer and the largest operator of the Boeing 787 Dreamliner, making ANA HD the biggest Dreamliner owner in the world. A member of Star Alliance since 1999, ANA has joint venture agreements with United Airlines, Lufthansa German Airlines, Swiss International Airlines and Austrian Airlines - giving it a truly global presence.

The airline's legacy of superior service has helped it earn SKYTRAX's respected 5-Star rating every year since 2013, with ANA being the only Japanese airline to win this prestigious designation for 10 consecutive years. ANA also has been recognized by Air Transport World as "Airline of the Year" three times (2007, 2013 and 2018); it is one of only a select few airlines to win this prominent award multiple times.

In 2021, ANA was awarded the 5-star COVID-19 safety rating by SKYTRAX, recognizing the airline's initiatives to provide a safe, clean and hygienic environment at airports and aboard aircraft, embodied in the ANA Care Promise.

ANA is the only company in the aviation industry to receive the Gold Class distinction from the 2022 S&P Global Sustainability Awards and ANA HD has been selected as a member of the Dow Jones Sustainability World Index list for the sixth consecutive year and the Dow Jones Sustainability Asia Pacific Index list for the seventh consecutive year.

For more information, please refer to the following link:
https://www.ana.co.jp/group/en/

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