All Nippon Airways (ANA) - ANA 1st Half Results FY2012 RNS Number : 9299P All Nippon Airways Co Ld 31 October 2012 ANA Financial Results for the First Half of FY 2012and Revised Outlook for the Year TOKYO October 31, 2012- ANA Group, Japan's largest airline group, today reports its consolidated financial results for the first half (April - September) of fiscal year 2012. Consolidated operating results of the six months included operating revenues of 753.2 billion yen and operating income of 75.3 billion yen which was the highest level on record. Recurring profit of 63.4 billion yen for the period was also a record. Net income for the period was 36.9 billion yen. During the second quarter, the Japanese economy showed underlying strength due to continued expectation of reconstruction demand. Meanwhile, the global economy slowed and conditions remain uncertain due to the external economic environment in Europe and China. Despite such challenging economic conditions, ANA steadily captured solid business and leisure demand during the first half, resulting in a significant increase in revenue compared to thesame period last year. The Group also made good progress implementing the cost structure reforms advocated under the ANA Group FY2012-2013 Corporate Strategy during the period. Efforts toward both increase in revenue and reduction in costs raised the Group's operation income to record levels. While responding to significant changes in the competitive environment within the Japanese airline industry, such as the expansion of capacity of Haneda and Narita, the deregulation of the airline industry and the launch of low-cost carriers, ANA Groupenhanced its network by balancing the pursuit of "strength" and "efficiency" as a network carrier. Consolidated Operating Results unit:billion yen(roundeddown) Difference 1H/ 1H/ 2Q/ from Difference ％Comparison FY2012 FY2011 FY2012 2Q/ FY2011 Operating revenues 753.2 704.8 +48.3 +6.9 410.0 +10.2 Operating expenses 677.9 654.7 +23.2 +3.5 345.7 +4.2 Operating income 75.3 50.1 +25.1 +50.2 64.2 +5.9 Non-operating income/ - 11.8 - 12.5 +0.6 － - 5.4 +0.6 loss (net) Recurring profit 63.4 37.5 +25.8 +68.7 58.7 +6.6 Extraordinary gains/ - 0.2 0.6 -0.9 － - 0.0 -0.9 loss (net) Net income 36.9 22.8 +14.0 +61.6 36.2 +4.9 Performance by business segment (consolidated) unit: billion yen (rounded down) 1H/ FY2012 1H/ FY2011 Difference 2Q/ FY2012 Difference Operating Segment Operating Segment Segment Operating Segment Segment revenues results revenues results Revenue results revenues Results Revenue results * * * * * Air 672.0 69.6 631.0 45.7 +40.9 +23.8 365.5 60.6 +8.8 +5.6 Transportation Travel 84.3 3.0 78.4 1.9 +5.8 +1.0 49.5 2.1 -2.4 +0.2 Services Others 73.5 2.6 67.7 2.1 +5.7 +0.5 37.4 1.5 +3.0 +0.3 * Operating income in each business is applied to segment results. Domestic Passenger Services Domestic passenger revenue rose by 15.2 billion yen to 343.0 billion yen, an increase of 4.6% compared to a year earlier. Demandwas stimulated by the affordable new Tabiwari 55 fares, and the Experience JAPAN Fare which is aimed at increasing non-Japanese international visitor demand. ANA increased its competitiveness in the domestic market by introducing the Boeing 787 aircraft to routes such asHaneda-Fukuoka, Haneda-Kagoshima and Haneda-Kumamoto and by increasing the frequency of flights on the high-demand Itami-Fukuoka/Niigata/Oita and Fukuoka-Niigata routes. Furthermore a new ANA Lounge was opened at Okayama Airport, whilst the lounges at Kumamoto Airport, Kansai Airport and Itami Airport were refurbished to enhance the level of service offered to ANA customers. Domestic Air Transportation 1H/ FY2012 1H/ FY2011 Difference ％Comparison (consolidated) Revenue (billion yen) 343.0 327.8 +15.2 +4.6 Number of passengers (thousand) 20,773 19,217 +1,556 +8.1 Available seat km (million) 29,727 28,408 +1,319 +4.6 Revenue passenger km (million) 18,336 17,053 +1,282 +7.5 Passenger load factor (%) 61.7 60.0 +1.7 ― *This figure does not include performance of AirAsia Japan. International Passenger Services International passenger revenue rose by 20.1 billion yen to 179.7 billion, an increase of 12.6% compared to a year earlier, with the number of passengers exceeding that of the same period last year. Demand from business and leisure customers remained steady. After the Great East Japan Earthquake impacted sales last year, demand rebounded in the first half, supported by the "IS JAPAN COOL?" campaign which was designed to attract visitors to Japan. In addition to improving the international network by opening the Narita-Seattle route on July 25, ANA introduced Boeing 787 aircraft for all flights on the Haneda-Frankfurt route. New Premium Economy seats were also introduced on flights to Europe and North America from August 29 to offer greater comfort. Furthermore, daily flights were introduced on China routes such as Narita-Hangzhou and Kansai-Hangzhou. Demand on routes between Japan and China rapidly declined due to the impact of the anti-Japanese demonstrations that occurred in China from mid-September. International Air Transportation 1H/ FY2012 1H/ FY2011 Difference ％Comparison (consolidated) Revenue (billion yen) 179.7 159.6 +20.1 +12.6 Number of passengers (thousand) 3,311 2,840 +471 +16.6 Available seat km (million) 18,490 16,919 +1,571 +9.3 Revenue passenger km (million) 14,341 12,204 +2,137 +17.5 Passenger load factor (%) 77.6 72.1 +5.4 ― *This figure does not include performance of AirAsia Japan. Cargo Services Domestic cargo revenue declined by 0.6 billion yen to 15.8 billion yen, a decrease of 3.8% compared to a year earlier. International cargo revenue declined by 3.7 billion yen to 41.4 billion yen, a decrease of 8.3% compared to a year earlier. Despite domestic cargo demand being bolstered by the solid performance of fresh cargo to and from Okinawa along with home delivery parcel services, the recoil from increased demand immediately following the earthquake and cancelled flights due to extreme weather conditions, led to cargo volume and revenue to both fall below the levels of the same period last year. In addition, a decline in demand between Japan and China was evident due to the impact of the ongoing European financial crisis and slowing of growth in the Chinese economy. Despite freight carried increasing from the same period last year as a result of actively engaging in third country transportation such as cargo from Europe bound for Asia and China, cargo from Asia and China bound for Europe, and cargo transported within Asia, revenue fell below that of the same period last year. Cargo (consolidated) 1H/ FY2012 1H/ Difference ％Comparison FY2011 Revenue (billion yen) 15.8 16.4 -0.6 -3.8 Freight carried 226 229 -3 -1.5 Domestic (thousand tons) Revenue Ton km 224 228 -4 -1.8 (million) Revenue (billion yen) 41.4 45.1 -3.7 -8.3 Freight carried 293 277 +16 +5.9 International (thousand tons) Revenue Ton km 1,167 1,081 +85 +7.9 (million) *This figure does not include performance of AirAsia Japan. Other Services Revenue from other services in the air transportation business increased due to additional handling service contracts with other airlinesand the service launch of ANA Group'slow-cost carrier. Revenue rose by 12.4% to 88.3 billion yen in the first half, compared to a year earlier. AirAsia Japan launched the Narita-Sapporo and Narita-Fukuoka routes on August 1 and the Narita-Okinawa route on August 3. ANA is pleased with initial performance, as AirAsia carried 96,607 passengers over 140 million available seat-km and 107 million revenue passenger-km and with a passenger load factor of 76.6% during the second quarter (August 1 - September 30). Outlook for FY2012(April 1, 2012 - March 31, 2013) It is widely expected that the Japanese economy will continue to be supported by reconstruction demand.However, there is a risk the Japanese economy will be subjected to downward pressure due to the growing sense of a slowdown in the global economy impacted by the continued challenging economic environment particularly in Europe and China, rising oil prices, volatile exchange rates and anti-Japanese demonstrationsin China. Performance in the first six months fell below initial targets in terms of both passenger revenue and cargo revenue, and this trend is expected to continue in the latter half of the year. Considering the impact of the anti-Japanese demonstrations in China on international passenger revenue, operating revenue is expected to be approximately 30.0 billion yen less than operating revenue stated in the consolidated earnings forecast announced on April 27 this year. ANA Group expects to reduce operating expenses in line with the anticipated decrease in revenue. The Group aims to achieve this through continuing its cost reduction plan, which is currently delivering results ahead of expectations. As a result, forecasts for operating income, recurring profit and net income remain unchanged from the initial announcement. Consolidated Operating Results (Forecast) unit: billion yen (rounded down) Revised forecast for Forecast Difference FY2011 Difference FY2012 for FY2012 Operating 1,470.0 1,500.0 -30.0 1,411.5 +58.4 revenues Operating income 110.0 110.0 - 97.0 +12.9 Recurring profit 70.0 70.0 - 68.4 +1.5 Net income 40.0 40.0 - 28.1 +11.8 Notes for Editors: - Aｌｌ financial informationare prepared on the basis of accounting principles generally accepted in Japan. - Aｌｌ financialinformationare 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 (59consolidated subsidiaries and 18 equity-method affiliates) Contact: Ryosei Nomura and Megumi Tezuka, ANA Public Relations TEL +81-(0)3-6735-1111 About ANA Group All Nippon Airways (ANA) is the eighth largest airline in the world by revenues (2011)and the largest in Japan by passenger numbers (2011). Founded in 1952, it flies today to80 domestic and international cities in a fleet of 233 aircraft serving a network of 171 routes. ANA has 33,000 employees and operates about 1,000 flights a day. In 2011, it carried 43 million passengers and generated revenues of $17.1 bn. ANA has been a core member of Star Alliance since 1999 and launched a joint-venture with United Airlines on trans-Pacific and Asia routes in April 2011; ANA launched a joint-venture with Lufthansa on Japan-Europe routes in October 2011. ANA has more than 24 million members belong to its Frequent Flyer Program (ANA Mileage Club). ANA is the launch customer for the world's newest and most advanced passenger aircraft, the Boeing 787 Dreamliner. The following URL links to the detailed report. http://www.ana.co.jp/eng/aboutana/corporate/ir/pdf/tan_121031_e.pdf This information is provided by RNS The company news service from the London Stock Exchange END IR DFLBXLBFEFBB -0- Oct/31/2012 08:00 GMT
All Nippon Airways ANA ANA 1st Half Results FY2012
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