ANA HOLDINGS Financial Results for the Three Months ended June 30, 2016

TOKYO, August 3, 2016 - ANA HOLDINGS (hereinafter “ANA HD”) today reports its financial results for the three months ended June 30, 2016.

  • Overview
    • - Revenues and profits for the period were affected by Kumamoto earthquake and terrorist incidents in Europe in addition to exchange rates and crude oil market conditions, changing in commission scheme for agency and unit price decrease in international cargo business.
    • - Consolidated operating revenue of ¥404.4 billion, consolidated operating income of ¥14.1 billion, consolidated ordinary income of ¥10.6 billion, and consolidated net income attributable to owners of ¥6.6 billion - all decreased from prior year.
    • - ANA expanded international network following launch of four new overseas routes in FY2015. It also improved coordination between domestic and international networks at Haneda and international connections at Narita.
    • - ANA, the only airline in Japan awarded 5-Star rating for “customer satisfaction” from SKYTRAX for fourth consecutive year, further improved services at airports and in flight to enhance customer convenience.
    • - Downside risks owing to slowdown in some overseas economies and uncertainty caused by UK exit from European Union but gradual trend towards recovery in Japanese economy. Consolidated business outlook for FY2016 unchanged.
  • Air Transportation
    • 1. Domestic Passenger Services
      • -ANA worked to increase passenger volumes by flexible fares in accordance with demand. However, due to factors including the Kumamoto Earthquake in April, both passenger numbers and revenue decreased from the same period in the prior year. Revenues from domestic passenger services decreased by ¥1.8 billion (a 1.2% decrease year-on-year).
      • -ANA worked to improve convenience for passengers by expanding and strengthening its network through the establishment of a new route between Haneda and Miyako, Okinawa as well as the restart of the year-round flights between Kansai, Osaka and Miyako. In addition, ANA also worked to optimize supply-demand through further fine-tuning to match aircraft deployment to bookings tendency.
      • -Inbound travel increased from the prior year helped by enhancing recognition of the “ANA Discover JAPAN Fare”, a fare for domestic routes sold to overseas visitors to Japan which is available for purchase at overseas travel agents.
      • - Refurbishment of Haneda Airport Terminal 2 to improve passenger service and convenience.
    • 2. International Passenger Services
      • -Although demand for leisure travel on routes departing Japan for Europe decreased due to the impact of terrorist attacks in Europe last year, overall passenger numbers and sales revenue increased because of business demand on flights to Europe, North America and Asia, in addition to continued steady demand for travel to Japan from other countries. Revenues from international passenger services rose by ¥3.9 billion (a 3.3% increase year-on-year).
      • -From April, ANA established a new route between Narita-Wuhan, China. ANA also worked to capture strong passenger demand through the introduction of Boeing 787 aircraft and improved product quality on both routes between Haneda-Honolulu and Narita-Mumbai.
      • -Due demand gap on China routes, ANA stimulated leisure demand from China to Japan by introducing discount fares for flights departing overseas destinations.
      • -ANA improved cabin service in business class with the launch of an initiative to provide passengers on flights to Europe, North America and Oceania with amenities from the popular brand Neal’s Yard Remedies.
    • 3. Cargo services
      • -In domestic cargo services, despite initiatives to capture demand principally in the home parcel delivery business, both cargo volume and revenue decreased from the same period in the prior year due to low overall demand for air cargo, in part as a result of a reduction in the volume of fresh produce originating in Hokkaido.
      • -In international cargo services, despite the growth of demand was limited in cargo deliveries from/to Japan, cargo volume increased over the same period of the prior year as ANA captured demand from China and other Asian destinations to North America via Japan, as well as intra-Asia. However, as a result of factors including the continued appreciation of the yen, declining unit prices due to a deterioration in the supply-demand environment, principally for flights departing China, and change of agency commission settlement scheme, revenue decreased from the same period of the prior year.
      •  As a result, revenue from domestic cargo services decreased by ¥0.1 billion (down 1.5% year-on-year) and revenue from international cargo services decreased by ¥8.3 billion (down 29.1% year-on-year).

    • 4. Others
      • -Other revenue from the Air Transportation business, which includes ANA's mileage program, Vanilla Air, in-flight sales and maintenance services for other airlines, was ¥47.2 billion (up 1.0% year-on-year).
      • -Vanilla Air received its ninth aircraft and from April started flying between Kansai, Osaka and Taipei, the airline's fourth international route, while also launching the "Value Alliance", the world's first-ever LCC alliance together with seven other LCCs in the Asia-Oceania region. As a result, Vanilla Air carried approximately 446 thousand passengers (up 13.7% year-on-year) during the quarter with a passenger load factor of 83.1% (down 0.7 points year-on-year).
  • Airline Related, Travel Services, Trade and Retail and Others
    • -In Airline Related businesses, operating revenue for the first quarter was ¥61.3 billion (up 6.1% year-on-year) and operating income was ¥2.4 billion (up 28.5% year-on-year) due to factors including an increase in contracts for ground support operations from other airlines at Haneda, Narita and Chubu Airport.
    • -In Travel Services, operating revenue decreased compared to the prior year in the domestic market, due to factors including the impact of the Kumamoto Earthquake on bookings made to the Kyushu region. Revenues also decreased in the international market due to factors including the impact of terrorist incidents in last year, in bookings for travel to Europe with “ANA Hallo Tour”. Due to intensifying competition, the number of bookings for travel to Japan also decreased year-on-year.
      As a result of these factors, operating revenue in the first quarter was ¥34.1 billion (down 6.0% year-on-year) but operating income was ¥0.6 billion (up 11.4% year-on-year) as a result of work to reduce expenses.
    • -In Trade and Retail, operating revenue for the first quarter was ¥34.4 billion (down 2.2% year-on-year) and operating income for the period was ¥1.0 billion (down 24.3% year-on-year) due to factors including lower sales revenue in the Retail and Food businesses.
    • -In others, first-quarter operating revenue was ¥8.3 billion (up 4.7% year-on-year) and operating income was ¥0.4 billion (up 17.8% year-on-year) due to factors including the good performance of the real estate brokerage business.
  • Outlook for the FY2016(Apr2016-Mar2017)
    • -Japan's economy is expected to continue recovering gradually due to factors including the effect of various government policies. However, the business environment is expected to be affected by various additional risks such as downturn in overseas economies. Competition in both domestic and international markets is also expected to intensify.
    • -Under these circumstances, ANA HD is committed to accomplish the “FY 2016-2020 ANA Group Corporate Strategy”, disclosed in January this year, as we work to achieve our corporate vision of becoming “the world's leading airline group".
    • -In the full-service carrier business, which is at the core of ANA HD’s profitability, ANA will work to maintain profitability on domestic services by further optimizing the supply-demand balance. On international routes, it will make further progress in advancing ANA’s dual-hub airport model for the Tokyo Metropolitan area by strengthening its network, while also working to improve brand strength and sales capabilities overseas. In addition, while working to maintain and improve profitability, ANA HD will actively work to expand its LCC business while also improving the profitability of non-air businesses and building an optimal business portfolio that can withstand volatility. ANA HD is also committed to moving forward with cost structure reforms, in order to strengthen the business foundations and maximize profits.
    •  Taking the above factors into consideration, there is no change to the consolidated business outlook for the FY2016 as originally announced on April 28.

Contact : Corporate Communications, ANA HOLDINGS,+81-3-6735-1111,

ANAHD is an aviation group with global operations and a total of 63 consolidated subsidiaries and 18 equity method affiliates. It is divided into passengers and cargo services segments as well as airline related business such as Catering and IT Services. ANAHD was formed in April 2013 and is the parent company of ANA; full service carrier, and Vanilla Air; LCC. ANA HD promotes a multi-brand strategy to leverage the strength of ANA brand and stimulate demand in markets not completely covered by its full-service airline offering, while expanding market share for the Group as a whole, leading to enhanced value. ANA has about 250 aircraft flying to 90 destinations and carrying about 50 million passengers per year. ANA is the largest airline in Japan by revenues and passenger numbers. ANA is a member of Star Alliance. Management vision of ANAHD is “It is our goal to be the world’s leading airline group in customer satisfaction and value creation.”