Aiming to realize a surplus for the full fiscal year by steadily implementing measures
We would like to thank all our shareholders and investors for your support of the ANA Group.
The triumphant activities of athletes from around the world at the Tokyo 2020 Olympics, which started on July 23rd, particularly those of the Japanese team, are deeply moving and inspiring. As an official airline partner of the Olympic and Paralympic, ANA is playing its part to help running the Games.
In the first quarter of the fiscal year 2021, the Group saw airline passenger demand struggle to grow in light of various factors such as the declaration of a state of emergency issued in late April and the effects of immigration restrictions that various countries have put in place. On the other hand, our international cargo business has expanded in scope, and as a result of assertively capturing strong demand for the transport of semiconductors and electronic components, has achieved its highest ever quarterly operating revenues. In terms of costs, as a result of steadily advancing business restructuring through various efforts including reductions to fixed costs, such as aircraft-related costs and personnel costs, we have managed to contain costs compared to the same period the previous year despite a recovery in the scope of operations. As a result of the foregoing, although we still reported an operating loss for the first quarter, income and expenditures have improved significantly compared to the same period the previous year.
As vaccination efforts are proceeding at a national level in Japan, going forward, we will flexibly adjust the scope of flights based on substantive recoveries in domestic air travel demand, and translate those adjustments into increased sales. Furthermore, we expect that we will begin to see signs of recovery in our International Passenger Services, due to the advancement of environmental adjustments meant to realize smooth international travel, such as the introduction of vaccine passports. On the other hand, given that Coronavirus (COVID-19) infection rates as of the end of July have reached record highs, we anticipate that the effects of the COVID-19 pandemic will extend into the long-term, and will thus work to realize a surplus for the full fiscal year by steadily implementing measures to further control costs. We would like to express our sincerest thanks to all our shareholders and investors for your continuous support and patronage of the ANA Group.
President and CEO