Japan's All Nippon Airways (ANA) reported a net profit of 153.8bn Japanese yen ($1.1bn) for the full financial year ending March 31, 2025, slipping 4.4bn yen ($30.3 million) compared to the prior year.
The result was driven by higher cost pressures, with operating expenses climbing 217.2bn yen ($1.5bn) to 2.1 trillion yen ($14.5bn). Additionally, expense growth outpaced revenue growth, which were up 205.9bn ($1.4bn) to 2.3 trillion yen ($15.9bn). The airline said costs increased to its rebound from the pandemic, as well as one-off factors. The airline expects costs to normalise over the next two to three years.
For the year ahead, the company estimates operating revenues to be up 108.1bn yen ($746.3 million) to 2.4 trillion yen ($16.6bn). Operating expenses are expected to outpace revenue growth again, increasing 119.7bn yen ($826.2 million) to 2.2 trillion yen ($15.2bn). Operating income is expected to fall again, with the company expecting an 11.6bn yen ($80.1bn) decline to 185bn yen ($1.3bn).
Additionally, the company is aiming to exceed pre-covid level of aircraft by 2028 with over 300 jets. However, delays from Boeing have limited its fleet growth. Additionally, the airline had four 787s and nine A320neo family aircraft grounded during the year due to engine modifications.
Operating income for the financial year was down 11.2bn yen ($77.3 million) to 196.6bn yen ($1.4bn), with operating income margin down 1.4 percentage points to 8.7%.
During the year, the airline carried a total of 8.1 million passengers, up 13.1%, with capacity up 8.4% and load factor improving 1.9 percentage points to 79.2%.
As of the end of the year, the company's net debt to equity was 0.1x, with 1.3 trillion yen ($9bn) liquidity on hand.