• Kyodo


ANA Holdings Inc. reported Wednesday a 20.7 percent year-on-year drop in group net profit in the April-June quarter, as powerful quakes in southwestern Japan and terrorist attacks in Europe curbed air travel demand.

Also hurt by the yen’s advance against other currencies, its group net profit stood at ¥6.65 billion ($65.72 million) in the three months through June 30. Operating profit was down 15.6 percent to ¥14.13 billion as sales slipped 2.3 percent to ¥404.43 billion.

ANA, the parent of All Nippon Airways Co., maintained its full-year earnings outlook through next March, projecting ¥80 billion in group net profit, up 2.3 percent from a year earlier. It expects ¥145 billion in operating profit, up 6.3 percent, as revenue will probably rise 1.1 percent to ¥1.81 trillion.

Demand for domestic air travel was affected by the quakes in April that rocked Kumamoto Prefecture, leading to a 1.2 percent year-on-year fall in the number of passengers to 9.79 million. Revenue also fell 1.2 percent to ¥150.5 billion.

ANA took a hit from weakening demand for its European routes following terrorist attacks in the region. But robust demand for flights to Japan from other parts of Asia benefited its international flight segment.

The number of passengers on its international routes was up 11.6 percent to 2.13 million, sending sales 3.3 percent higher to ¥123.3 billion.

“We saw strong demand for flights linking Asia and North America,” ANA Executive Vice President Yuji Hirako said at a news conference.

Hirako added that he is closely watching currency moves, particularly the yen’s recent gains, as a strong yen affects not only his company’s overseas profits but also demand for air travel from Asian countries to Japan.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.