ANA Financial Results for the First Quarter of Fiscal Year 2009
-- H1N1 flu compounds global recession causing operating and net losses --

TOKYO July 31, 2009 - ANA Group today announced its financial results for the first quarter of the current fiscal year, ending June 30, 2009. Consolidated revenue dropped 21.9% year-on-year to ¥269.8 billion, leading to an operating loss of ¥42.4 billion for the three month period April1 to June 30, despite a fall in costs of 5.6% to ¥312.3 billion. A net loss of ¥29.2 billion was reported.

“Beset by H1N1 influenza, which came on top of the global recession to further suppress demand to levels not seen before, the three month period under review was tough in the extreme,” said Tomohiro Hidema, ANA’s Executive Vice President, Finance. “Individual consumption in Japan was down, as companies saw tumbling revenues across the board and capital investment fell. While we managed to achieve around 6% in cost-savings in this quarter, continuing the trend from last year, this was far outweighed by the fall in revenue.

Looking forward to the next three months, the effect of H1N1 lessened as we moved into July and for the summer we are doing our best to stimulate demand for leisure travel. We thus expect an improvement in passenger numbers, albeit slight. In order to keep the impact of the first quarter fall in revenue on the entire year to a minimum, from the second quarter we shall implement an Emergency Income Recovery Plan to the tune of ¥30 billion. This is in addition to our plans to cut a further ¥73 billion in costs, our most ambitious cost reduction effort to date.

On the cargo front, volumes are improving, particularly on our China and other Asia routes, and we expect this to continue beyond the second quarter, bolstered by a flexible charging policy, ” he continued.

The following results refer to the three month period April 01, 2009 - June 30, 2009.

ANA Group consists of airlines, travel and other businesses. Each business segment performed as follows:
Domestic Air Transport
Against a background of falling demand for business travel, ANA strongly pushed individual leisure sales in the from of its advance purchase “Tabiwari” fares, and introduced a special fare for senior citizens, in order to stimulate demand. However, H1N1 influenza began to bite in mid May, and passenger numbers continued to fall. To counter this, ANA suspended service on certain routes in tandem with demand and reduced capacity or frequency on others, and in doing so managed to reduce its costs.

International Air Transport
In line with domestic, ANA tried to spur demand for individual leisure travel on international routes with a series of promotional fares designed to take advantage of the fall in the Fuel Surcharge from April 1. This initially bore fruit in the Golden Week holiday period, which saw more customers travelling than in the previous year. However, restrictions on business travel and cancellations to leisure travel in the wake of H1N1 influenza continued the overall downward the trend. Unit price worsened because of the fall in business travel and the lower Fuel Surcharge.
Again, in line with domestic, ANA temporarily reduced and/or suspended services on certain routes in order to improve efficiency, and further tightened its matching of supply to demand by down-sizing aircraft on others.


Domestic cargo volumes dropped overall year-on-year, however home parcel delivery services using flights centred on Okinawa held steady. Although international volumes also fell overall, demand began to gradually return from March this year, with shipments to China, Taipei and Seoul actually outperforming the same term of the previous year.

Outlook for FY2009
As the effect of H1N1 influenza wanes and ANA’s efforts to spur demand into the second quarter take hold, along with its income recovery and cost reduction plans, demand for both passenger and cargo services is expected to show some improvement. Consequently, no change will be made to the forecast announced on April 30 this year.
Rob Henderson, Public Relations:

Notes for Editors
– All monetary figures are given in billions of yen rounded down; other figures and percentages are rounded up.
– All comparisons are year-on-year.
– ANA Group airlines comprise: All Nippon Airways (ANA), Air Nippon (ANK) Air Japan (AJX), Air Nippon Network (A-Net), Air Next (NXA) and Air Central (CRF).

ANA Financial Results for the First Quarter of Fiscal Year 2009