TOKYO January 31, 2012 – ANA Group, Japan’s largest airline group, today reported its consolidated financial results for the first nine months of fiscal year 2011.

Operating revenues for the first nine months of the fiscal year 2011 rose three per cent to ¥1,069.8 billion, while operating income increased by 17.3 per cent to ¥91.1 billion and recurring profit by 22.5 per cent to ¥71.4 billion. Net income for the period was ¥33.7 billion compared with ¥37.5 billion the previous year.

Although economic conditions domestically and internationally remain challenging, ANA is working strenuously to stimulate demand, reduce costs and improve its competitiveness as a network carrier and in October became the first airline in the world to operate the new Boeing 787 Dreamliner. As a result of these different initiatives and the strength of the yen, ANA has revised upwards its forecast for operating income and recurring profit for fiscal year 2011, although operating revenues are expected to remain flat.

Japan’s economy continues to recover gradually from the Great East Japan Earthquake on March 11 last year but the outlook globally remains uncertain owing to rising oil prices, the government bond crisis affecting the Eurozone and exchange rate fluctuations. ANA has responded to this challenging economic environment by working to stimulate demand for both its domestic and international routes, and has rolled out approximately ¥30.0 billion in emergency cost improvement measures to minimize the impact on revenues. From November 1 last year, ANA began flying the Boeing 787, as a world’s first regularly scheduled service, and from January 21, began service on a new international route, Haneda-Frankfurt, further enhancing its competitiveness as a network carrier.

International Passenger Services
International business passenger demand largely recovered to pre-earthquake levels in June while leisure traffic returned to levels seen a year earlier over the summer months. However, it is expected to take until the end of the current fiscal year before there is a complete recovery in inbound passenger demand.
As with domestic services, ANA enacted contingency measures that included suspension or reduction of flights on some routes for a limited period. At the same time ANA took steps to accommodate demand on routes where traffic levels remained robust, such as Narita-Honolulu, by introducing larger aircraft. New routes were established between Narita-Chengdu (begun June 19) and Chubu-Hong Kong (begun October 30) and are also performing well.
ANA established an Eco-wari Christmas special fare to capture leisure demand, and also introduced joint fares to take advantage of the network formed by its joint venture with United and Continental Airlines. ANA’s efforts to restore the image of Japan through initiatives such as inviting groups from different countries to visit Japan to boost inbound demand seriously affected by the earthquake proved successful, and inbound demand is continuing to recover.

These measures resulted in a ¥26.9 billion increase in passenger revenues on international routes, 12.5% up on the same period the previous year.

Cargo Services
Cargo volumes on domestic routes exceeded those of the same period last year as demand to carry goods on air routes instead of via land transport increased after the earthquake, especially on Hokkaido routes, while capacity also increased with the introduction of the Boeing 787 aircraft in November.

International cargo volumes were affected by the impact of the earthquake on supply chains for automotive and electronics parts, and there was concern that there would be an overall decline in demand. However, production recovered to levels exceeding initial forecasts. Nevertheless, with the yen hitting a record high beginning in the summer, factory production began to shift overseas, creating difficult market conditions for air cargo out of Japan in particular, though ANA was able to capture sufficient export volume by expanding the range of cargo it handles.
The overall impact was an ¥800 million increase in domestic cargo revenues, up 3.7% year-on-year, and an increase in international cargo revenues of ¥2.0 billion, a 3.2% improvement over the same period the previous year.

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
   (62 consolidated subsidiaries and 21 equity method affiliates)