TOKYO, January 31, 2006 - ANA Group today reported a consolidated net profit of ¥10 billion on revenue of ¥347 billion for the third quarter of the 2005 financial year (October 1 to December 31, 2005). Operating profit was ¥20 billion, and a recurring profit of ¥15.9 billion was posted.

“This is the ANA Group’s tenth quarter of profitable operations,” said Tomohiro Hidema, ANA Senior Vice President Financial. “This is mainly due to our continuing efforts to curb costs and our focus on increasing revenue through the introduction of more appealing products and more convenient services. The growth in our passenger and cargo operations also reflects improving general economic conditions in Japan. However, despite posting our highest ever nine-month revenue and second highest ever operating profit, operating profit and net profit were adversely affected by continued record high oil prices – adding almost ¥12 billion to our costs in the third quarter alone, compared to the same period last year,” he continued.

Growth in international passenger revenue was attributed to a 7.2% improvement in unit price and strong demand for international business travel – balancing the slight drop in the number of leisure passengers carried due to last year’s anti-Japan demonstrations in China, and the terrorist attacks in London.

While domestically, the introduction of new seating, the expansion of the Super Seat Premium product, the move to the new terminal at Haneda Airport, and the Aichi World Expo were all said to have made a favourable contribution to profitability.

Looking at the nine-month period April 1 - December 31, 2005, revenue for the first three quarters of the year was up 5.7% to ¥1 trillion, and operating profit was up 10.9% to ¥89.9 billion. Recurring profit was also up 15.4% at ¥75.3 billion, while net profit was down 14.8% to ¥29.9 billion due to the aforementioned high fuel costs and an extraordinary loss arising from a change in accounting standards related to impairment losses on fixed assets.

In terms of cargo, steady demand for both international and domestic cargo services, and the introduction of ANA’s second freighter aircraft on routes to China and Asia in December 2005 made a positive contribution to the Group’s financial performance for the nine-month period. ANA Group Airlines carried 520,000 tons of cargo, an increase of 3.7%.

ANA transported a total of 37.7 million passengers – 34.7 million domestic and 3 million international – over 44.2 billion Revenue Passenger Kilometres (RPK) for the nine-month period. This breaks down to 30.2 billion domestic and 14 billion international RPKs. Overall, passenger numbers were up just over 2% thanks to a rise in domestic passengers of 2.7%. International passenger numbers stayed almost the same as the previous year – showing a slight decrease of 0.8 percentage points.

Given the robust demand for international business travel, especially on North America and Europe routes, for cargo services, and also the steady growth in domestic passengers for this fiscal year, the ANA Group is revising its profit forecast upward for the entire fiscal year. A comparison of the original forecast and the new forecast is as follows: