ANA Holdings has reported airline-related operating revenue of ¥149.8 billion, down 10.1% year-on-year, with operating income up 30.1% to ¥2.6 billion for the nine month period ending December 31, 2021.
Although operating revenue decreased year-on-year as a result of lower handling volumes for systems development due to reduced investment within the ANA Group owing to COVID-19, the group noted that profit improved as a result of reduction in personnel and outsourcing costs, mainly for ground handling services such as passenger check-in and baggage handling.
Total group operating revenue reached ¥738.0 billion for the nine month period, marking an improvement from the same time period for the previous year. The continued impact of COVID-19 resulted in an operating loss of ¥115.8 billion, an ordinary loss of ¥118.3 billion, and a net loss of ¥102.8 billion. However, ANA HD achieved a positive operating income in the third quarter (October-December), returning to black for the first time in eight quarters.
"Though the entire airline industry has faced continued challenges, I am proud of how ANA Group employees have persevered to help the company continue to meet passenger and cargo needs and maintain global connections at this vital time," said Ichiro Fukuzawa, Executive Vice President and Chief Financial Officer of ANA HOLDINGS INC. "We have adjusted our practices, but our commitment to offering unparalleled service and convenience remains unchanged. As the recovery continues, the ANA Group will continue seeking opportunities for growth and expansion with increased profitability."
The group reports that International passenger services continued to see reduced demand for travel across all regions due to the resurgence of COVID-19 cases, the spread of new variants and continued government travel restrictions. However, revenue and the number of passengers increased year-on-year due to a gradual recovery in business demand, primarily for expatriates traveling between Japan and overseas, as well as demand for connecting flights from Asia to North America and demand for flights home during the New Year holiday. Revenue and number of passengers remained at approximately 10% of pre-COVID levels.
ANA began transferring the operation of several North America routes from Tokyo Haneda to Tokyo Narita airport starting in July to optimize connections from Asia, an example of ANA closely monitoring demand to determine which routes to operate, as well as to offer temporary routes to destinations with seasonal demand and urgent travel needs.
The number of domestic passengers served and revenue both increased compared to the same period during the previous year. While a State of Emergency was repeatedly declared due to a surge in COVID-19 cases during the first half of the fiscal year, a recovery in demand was visible since the declaration was lifted at the end of September and the number of COVID-19 cases remained at a low level. As a result, the number of passengers and revenue in the third quarter (October-December) was the highest on a quarterly basis since the pandemic began and recovered to approximately 50% of pre-COVID levels.
ANA reports a continued strong performance in international cargo services, attributed to robust demand and a shift to air transport as a result of congestion in marine transport. ANA fully utilized freighter aircraft, introducing the Boeing 777F freighter on the Tokyo Narita - Hong Kong and Tokyo Narita - Taipei route in October, as well as on the Tokyo - Qingdao route in November. ANA said that it also actively responded to strong demand by deploying passenger aircraft to fly cargo-dedicated flights and by capturing demand for the transportation of goods such as automotive parts, semiconductors, electronic equipment and vaccines. In the third quarter (October-December), cargo volume greatly exceeded the amount transported during the same period in the previous year, leading to record high in quarterly revenue for the fifth consecutive quarter.
Peach Aviation passenger numbers and revenue increased compared to the same period during the previous year, when demand was more significantly impacted. Domestic passenger volume and revenue for the third quarter (October-December) exceeded pre-COVID levels behind strong demand after the State of Emergency was lifted at the end of September, and another contributing factor was Peach Aviation's expanded scale of operations.
Peach introduced new routes, Osaka Kansai - Memanbetsu in July, and Fukuoka - Ishigaki in October. Peach will continue to closely monitor signs of recovery in demand to further expand the network. All international routes are currently suspended due to continued immigration restrictions in a number of countries.