All Nippon Airways (ANA) has confirmed it is projecting “some delivery delays” into the fiscal year 2026, with the Japanese airline assuming 11 aircraft deliveries for fiscal year 2025.
ANA further noted the “ongoing engine availability challenges for part replacement” on the Trent 1000 engines for its 787 fleet. The company said the tight parts supply is “affecting aircraft availability and causing operational limitations”.
However, the airline said in its first nine months ending December 31, 2024, earnings release that its grounded A320neo family aircraft has improved to 11 during the nine-month period, compared to a year prior. The company said it will continue to respond to engine inspections and repairs of the geared turbofan (GTF) engine.
“[We are] continuously working with manufacturers and taking steps to enable further capacity growth,” said ANA in its results presentation.
Capacity was up 9% in the first nine months of the year, compared to the same period a year prior on its passenger services, while load factor was up only 0.4 percentage point to 78.5%. Passenger numbers climbed 12% to 5.9 million for the period.
Operating revenues for the third fiscal quarter, ending December 2024, were up 11.5% to 603.1bn yen ($3.9bn) – a record high for the company during its third quarter. Operating expenses outpaced revenue growth, up 17.4% to 540.4bn yen ($3.5bn). The growth was attributed to an increase in maintenance costs and labour costs.
The company’s operating income fell 21.9% during the quarter 62.7bn yen ($405.2 million), however the company said its operating income beat its forecast by 7bn yen ($45.3 million). The company said strong demand in North American and European routes had driven international operating income, while sustained leisure demand had supported domestic travel operating income. ANA’s EBITDA was up 13.7% to 100.3bn yen ($649 million).
Net income for the quarter was 53.7bn yen – down 2.4% compared to a year prior – while the first nine month’s net income was down 15% to 134.7bn yen ($871.5 million).
The company raised its full fiscal year outlook, ending March 31, 2025, after its results were published. The company expects operating revenues of 2.3 trillion yen ($14.9bn), up from 2.2 trillion yen ($14.2bn); operating income of 180bn yen ($1.2bn), up from previous estimate of 170bn yen ($1.1bn); and net income is now expected to be 140bn yen ($906 million), improving from previous estimates of 120bn yen ($776.5 million).
ANA said the third quarter saw strong demand for inbound tourism to Japan, as well as domestic leisure, resulting in strong international and domestic demand for the airline.
“We expect continued strong passenger demand in the fourth quarter (January to March),” the airline read in its report.
However, due to the weakened yen and maintenance costs, the company said it expects expenses to increase for the period.
“On the other hand, due to various compensation income related to aircraft will exceed expectations,” the airline added.
The dividend remains unchanged at 50 yen ($0.32) per share.
As of the end of last year, the company’s assets were valued at 3.6 trillion yen ($23.3bn), while shareholders’ equity is at 1.1 trillion yen ($7.1bn). Interest-bearing debt is at 1.4 trillion yen ($9bn). Debt to equity ratio was 1.2x for the company. ANA held 1.2 trillion yen ($7.8bn) in liquidity.