All Nippon Airways (ANA) overcame several challenges in 2011 to post a strong set of full-year results.
Despite a significant downturn in demand following the 11 March natural disasters, ANA managed to achieve net profits of JPY28.1 billion (US$346.6 million) for the 2011-12 financial year, which ended on 31 March 2012. This marks a 20.9% increase compared to the previous 12-month period.
Revenues increased 4.0% to JPY1.41 trillion, largely due to the strength of ANA’s international sectors. The airline carried 5.89 million passengers on routes to and from Japan during the year, with average cabin load factors of 73.7%. The domestic market was more subdued however, with an annual total of 39.02 million passengers representing a 3.8% year-on-year decline. Domestic load factors also remained low, at just 60.9%.
But the results are remarkable nonetheless, given the year of turmoil experienced by many Japanese businesses. Following the earthquake and tsunami, ANA was forced to temporarily suspended or reduce capacity on certain routes. But it also redeployed larger aircraft on routes with strong market to capture demand. The airline also saw the introduction of its new Boeing 787 Dreamliner fleet in October 2011, which it said gave it a “greater competitive edge” on certain domestic routes.
ANA has forecast a positive outlook for 2012-13. The carrier said that while risks remain from “the downturn in overseas economies and the appreciation of the yen”, it still expects net profits to rise more than 40% this year to JPY40 billion. Revenues are forecast to rise 6% to JPY1.5 trillion.
It would achieve this, it said, through three key initiatives; “the establishment of a multi-brand strategy, the enhancement of cost-competitiveness through structural reforms, and the move to a holding company structure”.
ANA also confirmed that it would commence Dreamliner services to Myanmar later this year, along with previously announced routes to the US cities of Seattle and San Jose.