ANA parent sticks to full-year outlook despite dip in six-month profit

ANA Holdings has maintained its full-year earnings forecast amid strong inbound and domestic passenger travel demand, even as its half-year profit slipped.

The parent company of All Nippon Airways says it still expects an operating profit of Y170 billion ($1.11 billion) for the year ending 31 March 2025, unchanged from previous forecasts.

It has revised upwards its full-year revenue to Y2.22 trillion, compared to Y2.2 trillion previously, as it expects strong passenger and cargo demand to continue for the rest of the year.

However, rising expenses meant its full-year profit forecast remains unchanged.

For the six months ended 30 September, ANA Holdings reported an operating profit of Y108 billion, down 16.5% compared to the year-ago period as a rise in costs outpaced an increase in revenue.

Still, ANA Holdings notes that its operating profit is “progressing steadily at a slightly higher rate than the plan for this fiscal year”.

The group posted its highest-ever half-year operating revenue – of close to Y1.1 trillion – up about 9.7% year on year.

International passenger revenue also hit a record high, at Y390 billion (up 8% year on year) for the six-month period, as strong inbound travel demand continued, and Japan outbound demand recovered quicker.

Network operator ANA carried 3.9 million passengers during the period, up 12.3% year on year, with traffic growing about 8%.

ANA also saw revenue growth in its domestic network, up 7% year on year, against a 6% rise in passenger volumes.

Low-cost unit Peach reported a 5.8% increase in revenues for the half-year, despite seeing a dip in passenger numbers. This was due to an increased “priority” in international network expansion, which helped boost its earnings.

ANA Holdings reported a 13.6% increase in operating costs to Y991 billion, “higher maintenance costs, investment in human resources and other factors”.