ANA’s third quarter net profit drops by 10%, pilots threaten a strike tomorrow
ANA’s (All Nippon Airways) (ANA Group) (Tokyo) net profit for the first nine months was 33.8 billion yen ($443 million), down from 37.5 billion yen a year earlier. This represents a 10 percent drop, due mainly to higher corporate taxes.
The company issued the following guidance:
“ANA Group, Japan’s largest airline group,
today reported its consolidated financial results for the first nine months of fiscal year 2011.
Operating revenues for the first nine months of the fiscal year 2011 rose three percent to 1,069.8 billion yen, while operating income
increased by 17.3 percent to 91.1 billion yen and recurring profit by 22.5 percent to 71.4 billion yen. Net income for the period was 33.7
billion yen compared with 37.5 billion yen the previous year.
Although economic conditions domestically and internationally remain challenging, ANA is working strenuously to stimulate demand, reduce costs and improve its competitiveness as a network carrier and in October became the first airline in the world to operate the new Boeing 787 Dreamliner.
As a result of these different initiatives and the
strength of the yen, ANA has revised upwards its forecast for operating income and recurring profit for fiscal year 2011, although operating
revenues are expected to remain flat.
Japan’s economy continues to recover gradually from the Great East Japan Earthquake on March 11 last year, but the outlook globally remains uncertain owing to rising oil prices, the government bond crisis affecting the Eurozone and exchange rate fluctuations. ANA has responded to this challenging economic environment by working to stimulate demand for both its domestic and international routes, and
has rolled out approximately 30.0 billion yen in emergency cost improvement measures to minimize the impact on revenues. From November 1 last year, ANA began flying the Boeing 787, as a world’s first regularly scheduled service, and from January 21, began service on a new international route, Toyko Haneda-Frankfurt, further enhancing its
competitiveness as a network carrier.”
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In other news, the pilots are threatening a strike tomorrow. ANA has issued the following statement:
“ANA Group regrets the threatened 24-strike on February 1st announced by its pilot unions and is continuing urgent negotiations with the unions concerned to avert industrial action and the disruption to passenger services it will cause.
Should the unnecessary strike go ahead, ANA will do everything possible to minimize the impact on passengers and services. No international flights will be affected. However domestic flights could regrettably be subject to cancellation and/or delay.”
Copyright Photo: Nick Dean.
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