TOKYO October 28, 2011 – ANA Group, Japan’s largest airline group, today reported its consolidated financial results for the first half (April - September) of fiscal year 2011. The Group achieved consolidated operating revenues of ¥704.8 billion in the six months, three per cent up on the same period the previous year, Operating income at ¥50.1 billion was 11.8 per cent lower while recurring profit was down 17.4 per cent to ¥37.5 billion. Net income for the first half was ¥22.8 billion compared with ¥13.2 billion a year earlier.
Demand for air travel recovered from the effects of the Great East Japan Earthquake on March 11. Nevertheless, the short-term outlook remains unclear due to factors such as the weakening global economy, steep rises in crude oil prices, and volatility in exchange rates and equity markets.

In light of the prevailing economic conditions, ANA has sought to minimize the impact of the earthquake by promoting various initiatives to stimulate demand and reduce costs and continued its ¥30 billion efficiency program to minimize the impact on revenues.

During the six month period, ANA also moved steadily ahead with its corporate strategy. On August 31 ANA established AirAsia Japan Co., Ltd. It also took delivery of the first Boeing 787 Dreamliner (September 26, JST), which is currently undergoing preparations to commence regular service on November 1.

International Passenger Services
-There was a marked decline in international passengers following the earthquake but numbers, led by business demand, began to rebound around the middle of April. By June business traffic had almost recovered to the level prior to the earthquake. Outbound leisure demand has also remained firm since July but a full recovery in inbound demand will require more time.
-On July 1 regular schedules resumed for the Narita-Seoul (Incheon) route that had been suspended and the Narita-Beijing route that had been operating on a reduced flight schedule following the earthquake. ANA also took steps to accommodate demand on routes where demand was robust, such as Narita-Honolulu, by introducing larger aircraft.
-In an early move to capture summer leisure demand, we released our Eco-wari Summer Special and Eco-wari fares. ANA’s efforts to restore the image of Japan through initiatives such as inviting governments, industry groups and media to visit various regions of Japan to boost inbound demand seriously affected by the earthquake proved to be successful, and inbound demand is continuing to show a moderate recovery.

This resulted in a ¥17.7billion or 12.5% increase in passenger revenues on international routes compared to the previous period and a 9.2 per cent increase in passenger numbers to 2.84 million.

Cargo Services
-Cargo volumes on domestic routes exceeded those of the same period last year as the demand to carry goods on air routes instead of land transport increased after the earthquake, especially to Hokkaido.
-International cargo volumes were affected by the impact of the earthquake on the supply chain for automotive components in particular and there was concern that there would be an overall decline in demand. However, a quicker than expected recovery in production and increased air freight capacity as Haneda Airport made the transition to an international airport resulted in an overall increase in international cargo volumes compared with the same period the previous year.

Overall, domestic cargo revenues increased by 5.2% year-on-year, an increase of ¥0.8 billion, while revenues on international cargo showed 10.4% year-on-year, an increase of ¥4.2 billion.

Notes for Editors:
- All financial information is prepared on the basis of accounting principles generally accepted in Japan
- All financial information is not audited and provided for reference only
- All percentages are rounded off, all other figures including monetary figures are rounded down
- All comparisons are year-on-year
- All figures are given on a consolidated Group basis
   (63 consolidated subsidiaries and 22 equity method affiliates)