| ANA Reports Net Profit for 2003 Fiscal Year - First dividend to be paid since 1997 - |
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TOKYO April 30, 2004 – ANA (TSE 9202) today reported a consolidated net profit of ¥24.7 billion (US$225 million) for the 2003 fiscal year, April 1, 2003-March 31, 2004, on total revenue of ¥1.21 trillion (U.S. $11 billion). |
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| The result represents a dramatic improvement on the ¥28.2 billion net loss that ANA reported for the 2002 fiscal year, and means that it will be able to resume dividend payments to shareholders this year, at ¥3 per share. | ||
| Operating profit in 2003 fiscal year was ¥34.3 billion (US$312.3 million), and recurring profit was ¥33.4 billion (US$304.0 million). This compares with the operating loss of ¥2.5 billion and recurring loss of ¥17.2 billion that were reported last year. | ||
| On a non-consolidated basis (airline only), ANA reported a net profit of ¥10.2 billion (US$93.3 million) compared with a net loss of ¥17 billion last year, and revenue rose 3% to ¥969.9 billion (US$8.8 billion) from ¥940.5 billion. | ||
| Operating profit was ¥24 billion (US$218 million), and recurring profit was ¥25 billion (US$227.8 million). The comparable results for the previous year were losses of ¥8.2 billion and ¥20.0 billion, respectively. | ||
| ANA Group airlines* transported 48 million passengers in fiscal 2003: 44.7 million passengers on domestic routes, and 3.3 million on international services. Overall, the number of domestic passengers was 5% lower than the previous year, international passengers fell 12.8% and total passengers transported were down 5.6%. | ||
| Available seat kilometers (ASKs) rose 0.9% on domestic flights and fell by 5.2% on international routes. Domestic load factor was 61.5%, down 3 percentage points, and international load factor was 68.8%, down 3.2 percentage points. | ||
| Despite the turbulent operating environment at the beginning of the year (SARS and Iraq war), ANA forged ahead with its restructuring efforts and launched its three-year cost reduction plan, the goal of which is to reduce costs by ¥30 billion per year by the end of fiscal 2005. This effort was very successful in its first year, and is viewed as one of the main reasons for the improved results being reported today. | ||
| A flexible response to the huge drop in demand on international routes in spring 2003 and the subsequent, dramatic rebound in international business travel from the second quarter, helped to stem revenue decreases. The above, coupled with a rise in unit prices, meant that despite 12.8% fewer passengers on international flights, revenue fell by just 5%. | ||
| The operating environment in Japan was challenging throughout the year, with competition intensified by the introduction of Shinkansen (bullet train) service from Shinagawa Station, one of Tokyo’s main rail hubs and the further merging of operations by ANA’s main competitors, Japan Air Lines and Japan Air Systems. | ||
| Nevertheless, improvements in scheduling, competitive pricing of fares and other promotional activities undertaken throughout the year to stimulate demand, plus a rise in unit prices, meant that ANA was able to maintain domestic revenue at nearly the same level as in the 2002 fiscal year, despite transporting 5% fewer passengers. | ||
| ANA Group airlines carried 635,965 tons of cargo, up 9.8%: 415,463 tons on domestic operations, up 8.3%, and 220,502 tons on international services, a 12.7% increase largely attributable to Boeing 767-300F freighter operations to China and Korea. | ||
| Cargo operations remained robust during the SARS epidemic in spring and summer 2003. Indeed, the freighter used primarily on China routes was able to pick up demand left by passenger aircraft that were taken out of service as ANA briefly scaled back operations. Within Japan, overnight cargo operations between Tokyo and Sapporo using Boeing 777 passenger aircraft also contributed to the improvement. | ||
| Mail services fell 3.2% overall to 86,706 tons: 73,226 tons on domestic routes, down 6.5%, and 13,480 tons on international routes, an increase of 20%. | ||
| The forecast for the 2004 fiscal year, which ends March 31, 2005, is set against the wider background of continued uncertainty in the Middle East and its possible ramifications for the travel industry worldwide. However, improving confidence in Japan’s economy, and the continued growth of ANA’s services in the booming China market, lead to a forecast of a consolidated net profit of ¥14 billion (US$127.2 million), on revenue of ¥1.26 trillion (US$11.5 billion) and a recurring profit of ¥29.0 billion (US$263.6 million). | ||
| ANA is determined to stay the course with its restructuring efforts, focusing on costs, fleet and network. The current year will see the strengthening of ANA’s competitive base with the opening of its new terminal building at Tokyo Haneda Airport towards the end of this calendar year, greatly improving convenience and amenities for passengers at ANA’s main hub. New possibilities of domestic and international growth will also be afforded by the opening of Central Japan International Airport in February 2005, of which ANA intends take full advantage. | ||
| *ANA Group airlines Domestic: ANA (All Nippon Airways), ANK (Air Nippon), ADK (Air Hokkaido), AKX (Air Nippon Network) International: ANA (All Nippon Airways), ANK (Air Nippon), AJX (Air Japan) |
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| All figures are rounded down. For comparison purposes only, figures quoted in US$ have been calculated at a rate of US$1 = ¥110. | ||
| All comparisons are year on year. | ||
 ANA reports consolidated financial results for FY2003(PDF 2,623kb) |
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