TOKYO October 31, 2005 - ANA Group today reported its consolidated first half financial results for the six month period ended September 30, 2005.

The Group reported revenue of ¥690.9 billion (2004: ¥659.4 billion), operating profit of ¥69.5 billion (2004: 59.7 billion) and recurring profit of ¥59.4 billion (2004: ¥53.1 billion) – all record highs at the six month point, in spite of spiralling fuel costs.

Net profit for the period came in at ¥19.7 billion (2004: ¥29.8 billion), actually 34% lower than the previous period in 2004, due to the adoption of asset impairment accounting methods within the Japanese accounting system.

Airlines within ANA Group posted consolidated revenue of ¥573.3 billion and an operating profit of ¥62.6 billion for the first six months of fiscal 2005. They carried 25.2 million passengers over 29.5 billion Revenue Passenger Kilometers (RPK), which breaks down to 23.2 million domestic passengers and 1.9 million international passengers over 20.3 billion RPKs and 9.2 billion RPKs respectively.

Overall, the entire network performed well. Domestically, passenger numbers grew 3.2%, attributed to improved services and products at the newly opened Haneda Terminal 2, the Aichi World Expo in Nagoya, as well as to improvements in inflight products, such as the Super Seat Premium, and co-operation with ground transportation providers. Revenue was up ¥16.8 billion or 5%, while capacity in terms of Available Seat Kilometers (ASKs) remained almost constant at 99.9% of the previous year.

In terms of international services, demand for travel in business class was high, particularly on North American routes, where increased capacity in business class and enhanced services made for a strong performance. Business travel demand on routes to China also remained high, however anti-Japan demonstrations from the spring continued to exert a downward influence on leisure travellers. Despite a 1.2% fall in passengers, a ¥4.7 billion or 4.3% increase was posted on international operations. Capacity (ASKs) again remained almost constant at 99.9% of the previous year.

Air cargo performed well, with domestic and international operations showing revenue increases of ¥115 million and ¥2.9 billion respectively, compared with the same period for the previous year

Looking to the next six months despite continuing efforts to curb costs, rising crude oil prices are expected to squeeze profitability and add ¥28.5 billion to ANA’s fuel bill. Accordingly, no change has been made to the forecast for fiscal 2005 of: net profit ¥10 billion on revenue of ¥1.326 trillion, and a recurring profit: ¥44.5 billion.