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TOKYO April 30th, 2003 - The ANA Group today reported a consolidated net loss of ¥28.2 billion (US$235.4 million) for the fiscal year 2002, which ended March 31st 2003. This compares with operating revenues of ¥1,215.9 billion (US$10.1 billion), an actual year on year increase of +0.9%. Operating loss was ¥2.5 billion (US$21.6 million), and recurring loss was ¥17.2 billion (US$143.6 million). Consolidated results refer to the ANA Group as a whole, including subsidiaries that are not directly related to air transport, such as ANA Hotels. The total number of companies included in these results is 133. On a non-consolidated basis, referring to ANA (All Nippon Airways Co Ltd) alone, the airline reported a net loss for the period of ¥17.0 billion (US$ 142.0 million). Operating revenues were ¥940.5 billion (US$7.8 billion), showing a year on year increase of 2.8%. An operating loss of ¥8.2 billion (US$68.8 million) was reported, and recurring loss ran at ¥20.0 billion (US$ 167.1 million). These results reflect the harsh operating environment of severe price competition in the wake of the Japan Airlines/ Japan Air System merger, and the cost of increased promotional campaigns to stimulate falling demand. This is figured against a background of depressed economic activity in Japan as a whole. The double blow of the Iraq war and the Sars outbreak at the very end of the final quarter of the financial year had a negative impact on international passenger numbers, which from September 2002 had actually shown a sharp increase, after initial slow growth in the first half of the financial year. Passenger numbers for the ANA Group Airlines* for the period under discussion were 47.1 million on domestic routes, and 3.8 million on international, demonstrating an increase of 2.9% and 10.1% respectively; total passengers carried were 50.9 million, an increase of 3.4%. Available Seat Kilometres (ASK) for the period were up 2.6% on domestic routes to 62,565,065 (thousand seat km), and down –3.5% on international routes to 25,974,398 (thousand seat km). Domestic and international load factors were up 1% and 6% to 64.6% and 72.1% respectively. ANA Group Airlines carried almost 580 thousand tons of cargo, an increase of 7.3%. Broken in to international and domestic operations, the respective figures are 195.6 thousand tons (+27.9%) and 384 thousand tons (-0.8%). This reflects strong demand, particularly from the Chinese market, in response to which ANA began cargo freighter operations to China in September 2002. Mail services by Group airlines saw an overall decline of 3.2% to 89.5 thousand tons. This can be broken down into 11.2 thousand tons on international routes (+54.7%) and 78.3 thousand tons on domestic (-8.2%). All comparisons are year on year. Looking to the present fiscal year (ending March 2004), ANA will continue to press ahead with its three year cost reduction and reform plans, which are based on improvements in network, the streamlining of the fleet and other moves to realise greater efficiency and cost savings. Although world economic uncertainty still remains following the end of the war with Iraq and the continuing effect of the outbreak of Severe Acute Respiratory Syndrome, mid to long term the demand for international flights to China and other parts of Asia is expected to grow. Demand in Japan has also shown a stable recovery and appears to continue to grow despite the deflationary spiral. As a group, ANA expects to achieve a consolidated net income of ¥15.0 billion (US$125.0 million), and a recurring profit of ¥15.0 billion (US$125.0 million) in fiscal 2003. |
Contact Rob Henderson r.henderson@ana.co.jp |
*ANA Group airlines Domestic routes: ANA (All Nippon Airways), ANK (Air Nippon), ADK (Air Hokkaido), ANN (Air Nippon Network) International routes: ANA (All Nippon Airways), ANK (Air Nippon), AJX (Air Japan) Note: All monetary figures are rounded down. For comparison purposes only, figures quoted in US$ are calculated at a rate of 1 US$ = ¥120. Operating income/ loss = operating revenues minus operating costs Recurring profit/ loss = operating income/ loss minus income/ loss from activities not related to the main field of operation Consolidated/Non-consolidated financial results for fiscal year ended March 31,2003 (PDF 348KB) |