ANA HOLDINGS Financial Results
for the Six Months Ended September 30, 2023

  • • ANA HOLDINGS INC. recorded an operating income of 129.7 billion yen with a profit margin of 12.9%, marking a record historical high for the first half of a fiscal year for both the profit amount and margin.
  • • Revenue from international passenger services reached a record high of 358.6 billion yen (approximately 2.2 times compared to the same period last year). Revenue from domestic passenger services was 322.9 billion yen (up approximately 33% from the same period of the previous year).
  • • ANA HOLDINGS INC. will maintain its consolidated earnings forecast for the fiscal year, while aiming for further improvement.
  • • For the first time in 5 years, ANA HOLDINGS INC. plans to pay a dividend of 30 yen per share for the current fiscal year, and we sincerely thank all of our customers and stakeholders for the continued support.

TOKYO, Oct. 31, 2023 - ANA HOLDINGS INC. (hereinafter "ANA HD") today reports its financial results for the six months ended September 30, 2023.

Overview
In the first six months of fiscal year 2023 (April 1, 2023 - September 30, 2023; hereinafter the "six months ended September 30, 2023"), led by strong growth in both domestic and international travel, overall passenger demand continued to steadily recover. As a result, ANA HD recorded an operating income of 129.7 billion yen, ordinary income of 127.3 billion yen, and net income attributable to owners of the parent of 93.2 billion yen, marking a record historical high for ANA HD's operating income and margin in the first half of the year.

"Due to the focus on fiscal management and operational delivery and with the continued support from our customers and various stakeholders, I am pleased to announce that we plan to reinstate the dividend payments to our shareholders for the first time in five years," said Kimihiro Nakahori, Executive Vice President and Group Chief Financial Officer. "ANA Group's positive performance reinforces our strategy to position the company for sustainable growth, and the results of the first half of the fiscal year reflects the contributions of our employees to achieve our goals."

Air Transportation
Supported by the recovery in inbound travel to Japan and leisure travel, demand for both international and domestic passenger travel was strong, and revenue was significantly higher than in the same period of the previous year. While variable costs increased due to an expansion in the scale of operations, profitability improved significantly as a result of extensive cost management initiatives.

  • 1. International Passenger Service (ANA)
    • ・Both passenger volume and revenue increased year-on-year as a result of strong demand for inbound travel to Japan, as well as proactive efforts to capture transit demand between North America to/from China and Asia, and efforts to boost leisure demand originating from Japan.
    • ・To further capture the recovery in passenger demand, ANA expanded the scale of operations in its route network. In response to the strong leisure demand, ANA increased the number of flights on the Airbus A380 "FLYING HONU" aircraft from 7 to 10 weekly flights on the Narita-Honolulu route.
  • 2. Domestic Passenger Service (ANA)
    • ・While business demand has yet to fully recover and other factors including typhoon and bad weather affected operations, both passenger volume and revenue increased year-on-year due to efforts to stimulate leisure demand through the "ANA SUPER VALUE" sale and other measures.
    • ・ANA increased the number of flights on holidays and during Japan's summer vacation season to actively capture leisure demand.
  • 3. Cargo Service (ANA)
    • ・International cargo volume was down from the same period of the previous year, mainly due to the decline in demand from major industries including semiconductors, electronic equipment and automotive-related industries, while revenue continues to exceed pre-COVID levels.
    • ・ANA raised its efforts to secure profitability by assessing demand trends by route and day of the week, and adjusting the operation of cargo aircraft as needed.
  • 4. LCC (Peach Aviation)
    • ・Both passenger volume and revenue increased year-on-year as a result of strong leisure demand on domestic routes especially on holidays and during the summer vacation period, and proactive efforts to capture demand on international routes including inbound travel to Japan. Passenger load factor improved as well, contributing to significantly improved profitability.
    • ・The Haneda-Shanghai (Pudong) route was resumed in May, followed by the resumption of the Kansai-Kaohsiung route in August, and all international routes from Haneda Airport and Kansai Airport that had been suspended during the pandemic were restored.
  • 5. Others
    • ・Other revenue from the air transportation business was 74.8 billion yen (up 10.1% year-on-year from 67.9 billion yen). 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
    • ・Both revenue and operating income increased from the same period of the previous year and returned to profitability, mainly due to an increase in ground handling services, handling of international cargo volume and meal-related operations, in line with the recovery in passenger demand.
  • 2. Travel Services
    • ・For domestic travel, demand recovered mainly during the Golden Week holidays and summer vacation period, and in addition to the dynamic package products for all destinations, products such as the "ANA Traveler's Hotel" performed well. For overseas travel, ANA actively captured demand for individual travel to Hawaii and Asian destinations such as South Korea and Taiwan. As a result, both sales and operating income exceeded those of the same period of the previous year and returned to profitability.
  • 3. Trade and Retail
    • ・In line with the recovery of passenger demand, revenue increased at the ANA FESTA and ANA DUTY FREE SHOP airport stores, as well as from the FUJISEY souvenir wholesale stores, which led to an increase in both operating revenue and income from the previous year.

Outlook for FY2023 (April 2023 - March 2024)

  • 1. Consolidated Financial Forecast
    • ・For the current fiscal year, a decrease of 8 billion yen in revenue is forecasted due to the Pratt & Whitney engine inspections, and in addition, higher oil prices and increased costs for securing resources is expected to have an impact of 40 billion yen total. However, the recovery in passenger demand continues to be robust, and with a thorough cost management across the ANA Group, we expect to meet our targets for the full year. At the moment, the consolidated earnings forecast presented at the beginning of the fiscal year will remain unchanged, however, the ANA Group will strive for a further increase.
    • ・After comprehensively taking into consideration the earnings and financial conditions during the period as well as the business environment going forward, the company intends to pay a dividend of 30 yen per share for the current fiscal year. This will be the first time in 5 fiscal years for the ANA Group to pay a dividend, and we sincerely appreciate the support of our customers and all stakeholders who have been involved in our business.
  • 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/