ANA 1H profit remains strong

ANA Holdings reported a net profit of Y57.4b ($546m) for the six months through Sept. 30, up 6.4% from a Y53.9b profit a year earlier. Revenue dropped 2.9% year-on-year, although this was offset by a 3.5% decline in costs. Domestic revenue fell by 1.7%, with the softer travel demand to the Kyushu region following the Kumamoto earthquakes in April cited as a major factor. Domestic capacity was down by just 0.3% for the period. In international markets ANA’s revenue dropped by 0.2%, with capacity rising 11.9%. The carrier reported “solid demand” for business traffic to Europe, North America and Asian countries. However, tourist demand from Japan to Europe was down following terrorist attacks in that region. International inbound demand remained strong, with the revenue fall caused by the higher yen and the decreased fuel surcharges. International cargo revenue dropped 28.3%. For the full fiscal year through March 31, ANA expects revenue of Y1.7t, Y70b lower than earlier estimates.<br/>