ANA Holdings, the parent company of Japan’s largest airline, All Nippon Airways (ANA), presented its results for the fiscal year to March 2023.
The carrier reported an operational profit of 120 billion Yen (approximately US$900 million), the first positive operational results in the last three fiscal years.
Net income attributable to shareholders was 89.4 billion Yen (US$668 million).
This return to the black was driven mainly by the increase in operational revenue, which grew by 67%, compared to a much lower increase in related costs (33%).
The recovery of air transportation revenue, which had been hard hit by the COVID-19 pandemic and the closure of Japan’s borders, accounts for much of this recovery, increasing from 885 billion to 1.53 trillion Yen (US$6.6B to US$11.45B).
While Japan eased COVID restrictions, ANA has been busy adding back routes and frequencies, with the Japan to North America market playing a prominent role, as well as increasing the utilization rate of its long-haul fleet.
ANA’s low-cost subsidiary, Peach, also participated in the recovery by more than doubling its revenue in the last fiscal year.
The Japanese carrier also provided positive guidance for next fiscal year, with both revenue and operating income expected to continue growing to 1.97 trillion and 140 billion Yen (US$14.8 to US$1.04B), respectively.