All Nippon Airways ANA ANA 1st Half Results FY2012

  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
unit:billion yen(roundeddown)

                        1H/    1H/                            2Q/      from
                                     Difference %Comparison
                       FY2012 FY2011                         FY2012    2Q/

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
Travel           84.3      3.0     78.4      1.9    +5.8    +1.0     49.5      2.1    -2.4    +0.2
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
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
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

       Cargo (consolidated)         1H/ FY2012  1H/   Difference %Comparison
              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
              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

*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
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 

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.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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