ANA HOLDINGS Financial Results
for the Nine Months ended December 31, 2016


TOKYO, January 27, 2017 - ANA HOLDINGS (hereafter "ANA HD") today reports its consolidated financial results for the nine months ended December 31, 2016.

  • Overview
    • ・Record operating income of ¥130.2 billion, up 11.5% on prior year, ordinary income of ¥124.2 billion, up 10.7%. Net income attributable to the owners of ANA HD up 18.0% to ¥86.5 billion, driven by consistent cost management and improved operating efficiencies.
    • ・Continued international expansion lifts passenger numbers but operating revenues 2.7% lower at ¥1,331.7 billion because of yen appreciation resulting in a decline in yen conversion amounts and reduced fuel surcharge income caused by decrease in crude oil prices.
    • ・Commencement of services to two new international destinations and further enhancements to the Tokyo Metropolitan Region dual-hub airport model resulting in better domestic-international connections at Haneda and international transfers at Narita.
    • ・ANA HD selected for inclusion in the Dow Jones Sustainability Asia-Pacific Index, one of the world's leading indices for socially-responsible investment.
    • ・Signs of slowdown in certain indicators such as capital investment over the period. Improving employment and consumption trends and Government policy actions supporting gradual recovery in Japanese economy. Increased uncertainty in overseas markets and fluctuations in financial markets.
  • Air Transportation
    1. Domestic Passenger Service
    • ・Domestic passenger services were affected by the typhoon in October and by snow in December, however, passenger numbers grew helped by setting flexible discount fares. There was a decline in unit price and as a result, operating revenues decreased by ¥8.7 billion (a 1.7% year-on-year decrease).
    • ・In addition to launching a new route between Haneda and Miyako, Okinawa during the summer timetable, ANA increased frequencies on certain routes during specific periods. From November with the commencement of operations of the Airbus A321ceo, ANA further worked to increase load factors by fine-tuning to match aircraft deployment to booking patterns.
    • ・In addition to initiatives to support the tourist industry in the Kyushu region recover from the earthquake in April, 2016, ANA also worked to stimulate demand and support the tourist industries of Hokkaido, which were damaged by a typhoon in August, and Tottori, which were damaged by an earthquake in October.
  • 2. International Passenger Service
    • ・Passenger numbers exceeded those of the prior year by 11.5% due to continued solid demand from inbound travellers and business travellers out of Japan. However, revenues decreased because of the yen appreciation resulting in a decline in yen conversion amounts and the decrease in fuel surcharge income. As a result, revenues from international passenger services decreased by ¥2.9 billion (a 0.7% year-on-year decline).
    • ・ANA worked to strengthen its network with the launch of new routes including Narita-Wuhan in April and Narita-Phnom Penh in September in addition to new routes of Haneda-New York, Haneda-Chicago, and Haneda-Kuala Lumpur from the winter timetable and increased frequencies on Narita-Ho Chi Minh City. These enhancements helped ANA capture a broader range of passenger traffic including business demand on flights departing Japan, demand for travel to Japan and between North America and Asia via Japan.
    • ・ANA worked to capture demand for leisure travel by offering discount fares on flights departing overseas airports, particularly on routes between Japan and China where the supply-demand balance is deteriorating.
    • ・In November, ANA became the first Japanese airline to provide in-flight entertainment programs which passengers with hearing and visual impairments can enjoy on most flights.
  • 3. Cargo services
    • ・In domestic cargo services, ANA benefited from the healthy market for home parcel delivery services while also operating extra flights during periods of high demand. However, the overall market for air cargo-based services remained stagnant for reasons including a decline in cargo departing Hokkaido due to inclement weather, resulting in a decline in volumes and revenues.
    • ・In international cargo services, ANA worked hard to capture solid demand for cargo transiting through Japan from other countries such as Asia and US and to capture recovering demand departing Japan. ANA also revised the network operated by its dedicated cargo freighters. As a result, cargo volumes exceeded the same period of the prior year, and monthly volumes of cargo marked a record high every month from September onwards. However, due to a reduction in income from cargo departing overseas airports affected by the impact of the stronger yen and the abolition of sales commission for cargo sales agents, revenues decreased from the same period the prior year.
  • 4. Others
    • ・Other Revenue from the Air Transportation Business, which includes ANA's mileage program, Vanilla Air, in-flight sales and maintenance services for other airlines, was ¥151.7 billion (up 5.9% year-on-year).
    • ・Vanilla Air launched new routes of Kansai, Osaka-Taipei in April, Taipei-Ho Chi Minh City and Okinawa-Taipei in September, and Narita-Cebu in December. From November, it became possible to use the Vanilla Air website to reserve connecting flights on Scoot, one of the other member airlines of the Value Alliance, the world's first low cost carrier alliance. Vanilla Air carried 1,532 thousand passengers during the period (up 18.1% year-on-year), with a passenger load factor of 85.4% (down 0.2 percentage points year-on-year).
  • Airline Related, Travel Services, Trade and Retail and Others
    • ・In Airline Related businesses, operating revenue for the third quarter was ¥192.5 billion (up 11.2% year-on-year) and operating income was ¥9.0 billion (in the same period of the prior year, a loss of ¥3.8 billion was recorded) due to factors including an increase in contracts for ground support operations from other airlines at Haneda and Chubu Airport.
    • ・In Travel Services, operating revenue decreased compared to the prior year in the domestic market, due to factors including stagnation in bookings of major tours. Revenues also decreased in the international market due to factors including the lingering impact of terrorist attacks in Europe. Due to intensifying competition, the number of bookings for travel to Japan also decreased compared to the same period in the prior year. As a result, operating revenue in the period was ¥122.0 billion (down 5.7% year-on-year) and operating income was ¥3.2 billion (down 23.3% year-on-year).
    • ・In Trade and Retail, operating revenue for the third quarter was ¥103.3 billion (down 4.6% year-on-year) and operating income for the period was ¥3.8 billion (down 13.5% year-on-year) due to factors including lower sales revenue in the Retail and Food businesses.
    • ・In others, third-quarter operating revenue was ¥25.1 billion (up 2.6% year-on-year) and operating income was ¥ 1.1 billion (down 4.0% year-on-year) due to factors including a solid number of contracts brokered by the real estate agency.
  • Outlook for the FY2016 (April 2016-March 2017)
    • ・Japanese economy is expected to recover gradually as the employment and income environment continues to improve and various government policies have a beneficial effect. But ANA HD expects that its business environment will be subject to various global risks including growing uncertainty in overseas economies and unpredictable fluctuations in foreign exchange and crude oil markets, as well as increasingly fierce competition in the aviation industry in both Japan and other countries.
    • ・However, ANA HD also expects to benefit from the ongoing increase in demand for travel to Japan in the run-up to the Tokyo 2020 Olympic and Paralympic Games and continued economic growth leading to increased air travel in the Asia-Pacific region.
    • ・In these circumstances, ANA HD is committed to accomplishing its FY2016-2020 Mid-Term Corporate Strategy of building a robust, cost-efficient business that can withstand changes in the global business environment and achieving its corporate vision of becoming "the world's leading airline group".
    •  Taking the above factors into consideration, there is no change to the consolidated business outlook for FY2016 as announced on October 31, 2016.

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

About ANA HOLDINGS INC.
ANAHD is an aviation group with global operations and a total of 63 consolidated subsidiaries and 17 equity method affiliates. It is divided into passengers and cargo services segments as well as airline related business such as Catering and IT Services. ANAHD was formed in April 2013 and is the parent company of ANA; full service carrier, and Vanilla Air; LCC. ANA HD promotes a multi-brand strategy to leverage the strength of ANA brand and stimulate demand in markets not completely covered by its full-service airline offering, while expanding market share for the Group as a whole, leading to enhanced value. ANA has about 260 aircraft flying to over 90 destinations and carrying about 50 million passengers per year. ANA is the largest airline in Japan by revenues and passenger numbers. ANA is a member of Star Alliance. Management vision of ANAHD is "It is our goal to be the world's leading airline group in customer satisfaction and value creation."