ANA Holdings Inc. returned to profitability for the first time in 10 quarters, and operating cash flow approached pre-COVID levels, exceeding 100 billion yen
• Passenger demand on international and domestic routes recovered steadily, while cargo demand remained strong
• Operating revenue increased by 151.5 billion yen to 350.4 billion yen (176% year-on-year), while operating expenses were limited to an increase of 88.2 billion yen to 351.7 billion yen (133% year-on-year) as a result of sustained effects of fixed cost reductions carried out as part of the structural business reform
• While COVID-19 cases in Japan are currently on the rise, total bookings continue to increase
• ANA HD maintains its consolidated financial forecast for FY2022, forecasting a return to profit
TOKYO, Aug. 1, 2022 – ANA HOLDINGS INC. (hereinafter “ANA HD”) today reports its financial results for the three months ended June 30, 2022.
Overview
In the first quarter of fiscal year 2022 (April 1, 2022 – June 30, 2022; hereinafter the “three months ended June 30, 2022”), the Japanese economy has been recovering, with corporate earnings generally improving and personal consumption gradually picking up. In the airline industry, passenger demand is rapidly recovering, with eased travel restrictions on domestic flights, as well as less entry restrictions in various countries for international flights.
Under these economic and operating conditions, increased revenue mainly due to the air transportation business contributed to an operating revenue of 350.4 billion yen for the three months ended June 30, 2022. While the continued impact of COVID-19 resulted in an operating loss of 1.3 billion yen, ordinary income was 4.3 billion yen, and net income attributable to owners of the parent was 1.0 billion yen, marking the first time in ten quarters that ANA HD has recorded a net profit.
“We are pleased to see the results of the first quarter with the increased passenger demand for domestic and international travel, and increased revenue in all of our business segments,” said Kimihiro Nakahori, Executive Vice President and Group Chief Financial Officer. “These results are a demonstration of the committed efforts by the global ANA team and helps to position us to continue to meet our customers’ needs amid this challenging operating environment.”
Consolidated Financial Performance of ANA Holdings Unit: billion yen (Except for % comparison, rounded down)
|
|
1Q/FY2022 |
1Q/FY2021 |
Difference |
|
Operating revenue |
350.4 |
198.9 |
+151.5 |
|
Operating expenses |
351.7 |
263.5 |
+88.2 |
|
Operating income |
-1.3 |
-64.6 |
+63.2 |
|
Other income |
5.7 |
0.8 |
+4.8 |
|
Ordinary income |
4.3 |
-63.7 |
+68.1 |
|
Special gain |
-0.0 |
– |
-0.0 |
|
Net income attributable to owners of the parent |
1.0 |
-51.1 |
+52.1 |
Performance by Business Segment Unit: billion yen (rounded down)
|
|
1Q/FY2022 |
1Q/FY2021 |
Difference |
|||
|
Revenue |
Operating income |
Revenue |
Operating income |
Revenue |
Operating income |
|
|
Air Transportation |
314.2 |
-1.9 |
170.1 |
-67.6 |
+144.1 |
+65.6 |
|
Airline Related |
55.4 |
1.9 |
53.3 |
5.1 |
+2.0 |
-3.1 |
|
Travel Services |
13.9 |
-0.5 |
9.1 |
-0.1 |
+4.7 |
-0.3 |
|
Trade and Retail |
22.4 |
0.5 |
19.1 |
-0.1 |
+3.2 |
+0.6 |
|
Others |
8.9 |
0.2 |
8.5 |
0.3 |
+0.3 |
-0.0 |
Air Transportation
Operating revenue exceeded the amount recorded during the same period of the previous year, backed by a significant increase in passenger demand on both domestic and international flights, as well as proactive efforts to capture high-yield cargo. While variable costs increased due to fuel prices and expanded scale of operations, profitability improved significantly as a result of disciplined cost management and curbing the increase in fixed costs.
1. International Passenger Service (ANA)
- Load factor rose to 7%, close to pre-COVID levels, led by a recovery in demand resulting from eased entry restrictions in various countries. Backed by recovering business demand originating from Japan, homecoming expatriates, as well as by accommodating the increasing demand for connections between Asia and North America, number of passengers increased by 5.2 times year-on-year, and revenue increased by 4.8 times, marking a significant improvement from the previous year.
(Except for % comparison and passenger load factor, rounded down)
|
International Passenger Service |
1Q/FY2022 |
1Q/FY2021 |
% Comparison |
|
Revenue (billion yen) |
62.2 |
12.9 |
+379.9 |
|
Number of passengers (thousand) |
684 |
131 |
+421.3 |
|
Available seat km (million) |
6,204 |
4,514 |
+37.4 |
|
Revenue passenger km (million) |
4,389 |
892 |
+392.0 |
|
Passenger load factor (%) |
70.7 |
19.8 |
+51.0pt |
2. Domestic Passenger Service (ANA)
- Number of passengers increased by 1 times and revenue increased by 2.0 times year-on-year, achieving a quarterly high since the COVID-19 pandemic began. With no State of Emergency or quasi-emergency measures in place during the first quarter for the first time in three years, leisure demand improved steadily, while business travel gradually increased as well.
(Except for % comparison and passenger load factor, rounded down)
|
Domestic Passenger Service |
1Q/FY2022 |
1Q/FY2021 |
% Comparison |
|
Revenue (billion yen) |
102.0 |
50.2 |
+103.3 |
|
Number of passengers (thousand) |
6,569 |
3,200 |
+105.3 |
|
Available seat km (million) |
11,084 |
6,980 |
+58.8 |
|
Revenue passenger km (million) |
5,976 |
2,981 |
+100.4 |
|
Passenger load factor (%) |
53.9 |
42.7 |
+11.2pt |
3. Cargo Service (ANA)
- International cargo volume was down from the same period of the previous year due to cancellation of flights on Europe routes due to the conflict in Ukraine, as well as a decline in demand for goods such as automotive However, unit price was 1.5 times and revenue increased by 1.4 times year-on-year due to the continued impact of marine transportation congestion, as well as efforts to expand flight operations on highly profitable North America routes and to capture high-yield cargo such as oversized commercial products.
(Except for % comparison, figures are rounded down)
|
Cargo Service |
1Q/FY2022 |
1Q/FY2021 |
% Comparison |
|
|
International |
Revenue (billion yen) |
94.7 |
66.0 |
+43.5 |
|
Freight carried (thousand tons) |
215 |
233 |
-7.4 |
|
|
Cargo Traffic Volume (million ton-km) |
1,125 |
1,233 |
-8.8 |
|
|
Domestic |
Revenue (billion yen) |
5.9 |
5.9 |
-0.1 |
|
Freight carried (thousand tons) |
59 |
56 |
+4.6 |
|
|
Cargo Traffic Volume (million ton-km) |
67 |
65 |
+3.4 |
|
4. LCC (Peach Aviation)
- By utilizing routes succeeded from ANA and through promotion efforts targeting leisure and homecoming demand on domestic routes, passenger volume increased by 4 times year-on-year and revenue greatly exceeded the same period of the previous year as well.
(Except for % comparison and passenger load factor, rounded down)
|
LCC |
1Q/FY2022 |
1Q/FY2021 |
% Comparison |
|
Revenue (billion yen) |
15.5 |
3.9 |
+291.1 |
|
Number of passengers (thousand) |
1,702 |
498 |
+241.8 |
|
Available seat km (million) |
2,894 |
1,240 |
+133.2 |
|
Revenue passenger km (million) |
1,938 |
580 |
+234.2 |
|
Passenger load factor (%) |
67.0 |
46.8 |
+20.2pt |
5. Others
- Other revenue from the Air Transportation business was 31.6 billion yen (up 8% year-on-year from
29.3 billion yen). This includes revenue from the mileage program, in-flight sales revenue, revenue from maintenance contracts and other sources.
Airline Related, Travel Services, Trade and Retail, and Others
- Airline Related
- Revenue increased from the same period of the previous year, mainly due to an increase in in-flight meal-related operations in line with recovery in passenger demand, as well as an increase in handling of international cargo However, operating income decreased year-on-year due to an increase in costs, such as labor costs.
2. Travel Services
- For domestic travel, demand recovered steadily especially for the Golden Week holiday For overseas travel, tours to Hawaii were resumed in April for the first time in two years, and tour destinations were also expanded sequentially to various countries as entry restrictions were eased. As a result, revenue increased from the same period of the previous year, however the operating loss increased due to higher labor costs.
3. Trade and Retail
- As passenger demand gradually recovered, sales increased at ANA FESTA shops in airports and the handling volume of semiconductors for electronics businesses increased. As a result, operating revenue returned to profit from the previous
4. Others
- Revenue increased year-on-year as a result of increase in contracted lounge operation and airport quarantine-related operation business, however operating income decreased from the same period of the previous year due to an increase in personnel and other
Consolidated Balance Sheet (Except for Equity ratio and D/E ratio, figures are rounded down)
|
|
1Q/FY2022 As of June 30, 2022 |
FY2021 As of March 31, 2022 |
Difference |
|
Total assets (billion yen) |
3,324.4 |
3,218.4 |
+105.9 |
|
Net assets (billion yen) |
832.3 |
803.4 |
+28.9 |
|
Shareholder’s equity (billion yen)*1 |
825.9 |
797.2 |
+28.6 |
|
Equity ratio (%) |
24.8 |
24.8 |
+0.1pt |
|
Liquidity on hand (billion yen)*2 |
1,031.1 |
950.9 |
+80.1 |
|
Interest-bearing debt (billion yen) |
1,727.2 |
1,750.1 |
-22.8 |
|
D/E ratio*3 |
2.1 |
2.2 |
-0.1 |
*1: For shareholder’s equity, assets of non-controlling interests are deducted from net assets
*2: Liquidity on hand: Cash and deposits + Marketable Securities
*3: Debt/equity ratio: Interest-bearing debt / Total shareholders’ equity
Consolidated Statement of Cash Flow Unit: billion yen (rounded down)
|
|
1Q/FY2022 |
1Q/FY2021 |
Difference |
|
Cash flow from operating activities |
118.9 |
-39.9 |
+158.9 |
|
Cash flow from investing activities |
-99.1 |
298.5 |
-397.6 |
|
Cash flow from financing activities |
-23.6 |
-0.3 |
-23.2 |
|
Cash and cash equivalents at the end of the current period |
623.2 |
628.7 |
-5.5 |
|
Substantial free cash flow |
97.6 |
-59.4 |
+157.1 |
Outlook for FY2022 (April 2022 – March 2023)
ANA HD maintains its consolidated financial forecast for FY2022, presented on April 28, 2022.
Consolidated Financial Forecast Unit: billion yen (rounded down)
|
|
Forecast for FY2022 |
FY2021 |
Difference |
|
Operating revenue |
1,660.0 |
1,020.3 |
+639.6 |
|
Operating income |
50.0 |
-173.1 |
+223.1 |
|
Ordinary income |
30.0 |
-184.9 |
+214.9 |
|
Net income attributable to owners of the parent |
21.0 |
-143.6 |
+164.6 |