International travel demand drives ANA revenues and operating profits

Strong travel demand and cost controls helped ANA Holdings, the parent of All Nippon Airways, power to a record operating profit its latest financial year. ANA’s highlights in the 12 months to 31 March included the capture of inbound demand from Asia and North America, which also saw “higher-for-longer” yields. Domestically, ANA was able to capture strong demand for leisure travel, while low-cost unit Peach expanded its international routes, resulting in record revenues and operating profitability. “Passenger demand continues to recover despite concerns about geopolitical risks such as the situation in Ukraine and the Middle East region and the implications for the airline industry,” says ANA. “Against the backdrop of factors such as the change in the status of Covid-19 to a category 5 infectious disease in Japan, both international and domestic passenger services performed well, supported by strong demand for inbound travel to Japan and domestic leisure demand, leading to significantly higher operating revenue compared to the previous fiscal year.” For the 2023 financial year ANA saw a consolidated operating profit of Y208b ($1.3b), doubling from a year earlier. Revenue rose 20.4% to Y2.1t, as net profits nearly doubled to Y157b. Mainline carrier ANA’s international passenger revenue jumped 68% to Y728b, as the number of international passengers carried rose 69.4% to 7.1m. International ASKs rose 48.5% as RPKs rose 56%, while ANA’s international passenger load factor rose 3.7 percentage points to 77.3%. ANA’s domestic passenger revenue rose 21.8% to Y654b, as the number of domestic passengers rose 18% to 40m. Domestic ASKs rose 8.7% as domestic RPKs rose 18.2%. ANA’s domestic passenger load factor rose 5.7 percentage points to 70.2%.<br/>