Category Archives: ANA Group

ANA Holdings reports a loss for the fiscal first quarter

ANA Holdings and the ANA Group issued this report for the fiscal quarter ending on June 30, 2021:

  • While the net loss for the first quarter of FY2021 was 51.1 billion yen, it represented the least amount of loss since the fourth quarter of FY2019
  • • The results were led by the highest-ever quarterly international cargo revenue and continued cost cutting measures
  • • ANA Holdings Inc. remains committed to returning to a profit for FY2021, backed by recovering travel demand, strong cargo business, continued cost cutting measures and the growth of non-aviation businesses

ANA Holdings reported its financial results for the three months ended June 30, 2021.

Overview
In the first quarter of fiscal year 2021 (April 1, 2021 – June 30, 2021, hereinafter the “three months ended June 30, 2021”), although the Japanese economy is still severely affected by COVID-19, corporate activities and capital investment continued to rebound. However, lower personal consumption figures indicate lingering weaknesses as well.

There have been signs of recovery in the airline industry, especially increased demand within the United States and European countries where an increase in vaccination rates has progressed. However, hurdles still remain on many international routes due to restrictions on entry and travel in a number of countries.

Despite these challenges, ANA HD renewed its commitment to its longterm environmental goals in April, setting targets such as reducing CO2 emissions generated by airline operations to net zero by 2050. In June, ANA HD also issued Sustainability-Linked Bonds, for which terms and conditions vary according to specific ESG goals being achieved.

For the three months ended June 30, 2021, operating revenues increased from the previous year to 198.9 billion yen. The operating loss was 64.6 billion yen, the ordinary loss was 63.7 billion yen, and net loss attributable to owners of the parent was 51.1 billion yen. While COVID-19 continues to impact performance, the results represented the least amount of net loss since the fourth quarter of FY2019.

“Our performance this quarter has validated the strategic approach adopted by the entire ANA Group in the face of numerous and complex challenges that have affected the entire airline industry,” said Ichiro Fukuzawa, Executive Vice President and Chief Financial Officer of ANA HOLDINGS INC. “Though COVID-19 and accompanying immigration restrictions have dampened demand for international travel, this turnaround was made possible by the impressive growth of our cargo business, rebounding travel demand, and targeted cost-cutting measures that have led to the greatest improvement in quarterly financial results since COVID-19 started impacting our business in the fourth quarter of FY2019.”

ANA HD has started to apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),” and other accounting standards beginning this fiscal year. Values for the three months ended June 30, 2021 reflect these accounting standards. For details, please refer to “ANA HOLDINGS INC. Consolidated Financial Results For the Three Months Ended June 30, 2021” on the ANA Group Investor Relations website (https://www.ana.co.jp/group/en/investors/blank).

Air Transportation

  • 1. International Passenger Service (ANA)

    • ・For international passenger services, travel demand in all regions remained suppressed due to the impact of COVID-19. 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, and connecting demand from Asia to North America as the United States scaled up its vaccination efforts.
    • ・While large-scale route network suspensions are still occurring, we are closely monitoring demand to determine which routes to continue operating and are looking for opportunities to offer temporary routes to destinations with specific demand including cargo volumes.
    • ・ANA conducted trials of both Common Pass and IATA Travel Pass with the aim of introducing universal digital certificates containing electronic medical records such as COVID-19 test results and vaccination history. We will continue to work with all relevant parties to achieve a streamlined immigration control process.

As a result, revenue from international passenger service increased to 12.9 billion yen (up 36.5 percent year-on-year).

  • 2. Domestic Passenger Service (ANA)

    • ・While a State of Emergency has repeatedly been declared in Japan due to a resurgence in COVID-19 cases, the number of passengers and revenue has more than doubled compared to the same period in the previous year, when the impact of COVID-19 was the most severe.
    • ・Detailed adjustments to the route network capacity were made in response to fluctuations in demand, and ANA will continue to closely align its services with the expected recovery in demand as vaccinations progress.
    • ・ANA remains committed to ensuring a clean and hygienic environment through the “ANA Care Promise” program. Together with JAMCO Corporation, ANA jointly developed the world’s first hands-free aircraft lavatory doors, which are being rolled out gradually beginning in May. Going forward, we will continue to strive to provide safe and comfortable services at every stage of the travel experience.

Revenue from domestic passenger service increased to 50.2 billion yen (up 123.5 percent year-on-year).

  • 3. Cargo Service (ANA)

    • ・For international cargo services, ANA Cargo actively responded to strong demand by operating additional one-time cargo flights and utilizing passenger aircraft to fly cargo dedicated flights. In addition, ANA Cargo introduced freighter aircraft for use on certain routes, for example operating the Boeing 777F aircraft on the Tokyo Narita – Los Angeles route. By capturing demand for the transportation of goods such as automotive parts, semiconductors, and seasonal products including North American cherries, cargo volume greatly exceeded the amount transported during the same period in the previous year and quarterly revenue hit a record high.

Revenue from international cargo service increased to 66.0 billion yen (up 159.5 percent year-on-year).

  • 4. LCC (Peach Aviation)

    • ・While demand continues to be impacted by COVID-19, both passenger numbers and revenue increased compared to the same period in the previous year, when demand was most severely impacted.
    • ・After increasing the scale of domestic flight operations to above pre-COVID-19 levels in April, we controlled flights from May onward in light of the slowdown in demand that accompanied a resurgence in COVID-19 cases. We will continue to flexibly adjust the scale of operations and will closely monitor any shifts in demand that occur as vaccination progresses. All international routes are currently suspended due to continued immigration restrictions in a number of countries.

As a result, revenue from the LCC segment increased to 3.9 billion yen (up 128.5 percent year-on-year).

  • 5. Others

    • ・Other revenue from the Air Transportation business was 29.3 billion yen (down 7.2 percent year-on-year). This includes revenue from the mileage program, in-flight sales revenue, revenue from maintenance contracts and other sources.

  • Airline Related, Travel Services, Trade and Retail, and Others

    • ・For airline related business, operating revenue was 53.3 billion yen (down 10.9 percent year-on-year). As a result of cost cutting efforts of fixed costs such as personnel and outsourcing costs, operating income improved to 5.1 billion yen (up 522.6 percent year-on-year).
    • ・For travel services, while all overseas tours operated by ANA Group remain suspended due to the effects of COVID-19, domestic travel services increased its handling volume, particularly with dynamic travel package products offered online. As a result, operating revenue increased 190.5 percent year-on-year to 9.1 billion yen and the operating loss was 0.1 billion yen, compared to an operating loss of 2.7 billion yen the previous year. New initiatives initially conceived through proposals submitted by employees were rolled out, including in-flight wedding ceremonies, THE WEDDING with ANA, and in-flight restaurants, Restaurant with Wings, utilizing parked aircraft. Charter flights and in-flight restaurant experiences on the A380 “FLYING HONU” aircraft usually dedicated for the Honolulu route were offered as well. In April, we transferred ANA Sales Co., Ltd.’s travel business to ANA X Inc., which is in charge of platform businesses that utilize customer data assets. The aim of this transfer is to enhance sales in the digital field. ANA Sales Co., Ltd. changed its name to ANA Akindo Co., Ltd, with its main focus on revitalizing regions in Japan.
    • ・For the trade and retail division, ANA FESTA shops in airports saw an improvement in revenue due to recovering domestic passenger demand, and the handling volume of semiconductors for the electronics business increased. However, accompanying the change in accounting standards, operating revenues decreased 2.8 percent year-on-year to 19.1 billion yen, and the operating loss was 0.1 billion yen, compared to an operating loss of 1.3 billion yen in the previous year.
    • ・For other businesses, operating revenues decreased 7.1 percent year-on-year to 8.5 billion yen due to a decrease in demand for buildings and facilities maintenance due to the impact of COVID-19. Operating income was 0.3 billion yen, down 46.6 percent from the previous year.
  • Outlook for FY2021 (April 2021 – March 2022)
    ANA HD maintains its consolidated financial forecast for FY2021, presented on April 30, 2021.

 

ANA Holdings acquires a 9.5% state in PAL Holdings

Philippines (Philippine Airlines) Boeing 777-3F6 ER RP-C7773 (msn 38718) LAX (Michael B. Ing). Image: 945498.

ANA Holdings has made this announcement:

ANA Holdings, Inc., parent of All Nippon Airways (ANA), will invest $95 million US dollars in PAL Holdings Inc. and acquire 9.5% of PAL Holding’s outstanding shares. PAL Holdings is the parent of Philippine Airlines Inc. (PAL), the Philippine flag carrier and the largest airline in the Philippines.

ANA HD will acquire the shares from Trustmark Holdings Corporation, which is owned by the Lucio Tan family and is the largest shareholder of PAL Holdings.

In line with the Mid-Term Corporate Strategy for FY2018-2022, the ANA Group is expanding its international group network, which is considered its main growth pillar, and strengthening its partnerships with foreign airlines to provide further convenience to its passengers.

This purchase underscores ANA HD’s belief in the dynamism of the Asian region and the great potential of the Philippines’ multi-awarded flag carrier and its confidence that the Philippine air travel market will continue to serve as an economic leader for the ASEAN region.

Additionally, the investment by ANA HD heralds the dawn of a new era of growth for PAL, which has embarked on a full-scale expansion program that has seen its fleet and network grow to almost 100 aircraft and 80 destinations in four continents. This campaign has coincided with an emphasis on product transformation that saw PAL recognized recently as the World’s Most Improved Airline for 2019.

ANA operates 14 flights weekly on 2 routes to the Philippines and Philippine Airlines currently operates 84 flights weekly on 9 routes to Japan. The two carriers have codeshare operations on Japan – Philippine routes and domestic routes within Japan and the Philippines, linking a total of 16 Japanese and 11 Philippine destinations.

Completion of the investment is subject to certain closing conditions.

Top Copyright Photo (all others by PAL): Philippines (Philippine Airlines) Boeing 777-3F6 ER RP-C7773 (msn 38718) LAX (Michael B. Ing). Image: 945498.

Philippines aircraft slide show:

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ANA Group announces its fiscal year 2019 flight schedule

ANA (All Nippon Airways) Boeing 787-8 Dreamliner JA823A (msn 42246) "787" HND (TMK Photography). Image: 945375.

All Nippon Airways (ANA) has announced its Fiscal Year 2019 (FY2019) flight schedule.

Based on the rising global demand for air travel, ANA has expanded its network of routes, placing an emphasis on international flights. During FY2019, ANA plans to proactively develop new routes to areas where service was not previously available. New destinations include Perth in Western Australia and Chennai in Southern India. These decisions were based on ANA Group’s Mid-Term Corporate Strategy for FY2018-2022. ANA will further strengthen the “Tokyo Metropolitan Dual Hub Model” that makes full use of both Haneda and Narita airports.

ANA will continue to maintain and improve profitability by optimizing the size of the aircraft in accordance with demand trends and the competitive environment, all while also flexibly adjusting aircraft types in use.

Building upon the changes to its passenger side, ANA’s potential to meet demand for cargo transport will also increase with the introduction of a new Boeing 777F large-scale air freighter. This coincides with projected increases in demand over the medium to long term for routes between Asia and North America.

The airline also aims to further increase the comfort of passengers by introducing new state-of-the-art aircraft, products and services.

ANA will employ Japan’s first Airbus A380 aircraft on its Hawaii route, providing a new travel experience.

In addition, ANA plans to improve profitability by introducing the Boeing 787-10, the latest model in the Boeing 787 series, to its Southeast Asian routes. This new addition is expected to capture the increasing demand for connection traffic via Japan.

Below are the details of ANA’s schedule and frequency for the international, domestic, and freighter routes.

  • *Flight plans are subject to government approval. All schedules are subject to change.

International Routes

Following the launch of the Haneda-Vienna route on February 17, 2019, ANA will continue opening up new routes worldwide. On September 1, Narita = Perth daily service will be available and Narita = Chennai daily service will be available for the 2019 winter schedule period. These are cities where there are no direct flights from Japan. The new flights will provide convenient travel options for ANA passengers and appeal to the increasing number of travelers flying these routes.

ANA is expecting the flow of people and goods in the Asia-Pacific region to further expand with the strengthening of key economic partnerships such as RCEP (Regional Comprehensive Economic Partnership). By opening a new route, ANA will contribute to expanding commercial exchange between Japan and Australia as well as between Japan and India. The new routes will also strengthen the air travel network in the Asia-Oceania region, and further enhancing the presence of ANA in this vital market.

  • (1) New routes

    • 1.Narita = Perth
      From Sept. 1, 2019, ANA will be the first airline in Japan to provide a route from Narita to Perth, Australia. This will be ANA’s second destination in Oceania.
  • – In addition to business demand from key industries – including mineral resources and natural resources – ANA will capture the increasing demand for travel to and from Japan.
  • – Perth is said to be the “most beautiful city in the world” and is Western Australia’s largest city. It features an elegant blend of historic and modern architecture with public green spaces.
  • – Since the seasons are reversed in Japan and Perth, there is a stable market for two-way leisure travel throughout the year.

Reservation and sales will start on Feb. 7, 2019.

    • 2.Narita = Chennai
      Starting in winter 2019, ANA will begin to operate flights from Narita to Chennai, India, marking the first direct connection between Japan and Chennai. This will be the third destination in India that ANA will offer service to.
  • – India sends many visitors to Japan, and demand for travel to the country is increasing annually as economic growth continues. ANA intends to capitalize on this growth by opening the only direct flight from Japan to South India.
  • – Chennai has the second largest port in India and has an established automobile industry. Chennai is also called the “Detroit of India,” so cargo demand can be anticipated in addition to passenger demand.
  • – In addition, ANA will acquire travel demand from neighboring areas including Bengaluru (Bangalore) and Hyderabad, which are growing rapidly as the base of the Indian IT industry.

Information about the launch date, schedule, aircraft and timing for the start of sales will be announced when it becomes available.

  • (2) Resumed routes and increased frequency
  • (3) Changes in aircraft
    Starting May 24, 2019, ANA will start operating the world’s largest passenger aircraft – the Airbus A380 – between Narita and Honolulu. The route will start with three round trips per week and will be expanded to 10 round trips per week from July 1, 2019, when ANA introduces its second Airbus A380 aircraft.

In addition, a 294 seat Boeing 787-10 (the latest and longest model in the Boeing 787 series) will serve the Narita – Singapore route from April 26, 2019, and Narita – Bangkok starting July 1, 2019, in order to capture the increasing demand for connection traffic via Japan.

Domestic Routes

ANA will continue its Haneda = Ishigaki, Haneda = Okinawa and Haneda = Hiroshima routes to capture the significant demand for travel between these destinations. In addition, ANA will increase the number of Narita = Nagoya (Chubu) flights to meet demand for international connections from the region to flights such as Narita = Honolulu flying on an Airbus A380. By providing customers visiting Japan access to flights all over the country, ANA will further increase its network of both domestic and international routes.

ANA will continue to maintain and improve profitability by optimizing the size of its aircraft in accordance with demand trends and market factors while also flexibly adjusting aircraft types in use.

  • (1) Resumed routes and increased frequency

Cargo Route

Cargo demand between Asia and North America is expected to increase over the medium to long term and ANA will respond with the introduction of a Boeing 777F aircraft capable of transporting large cargo. As freight demand grows alongside passenger demand, ANA will actively work to increase its share of both.

  • (1) New routes
  • (2) Changes in aircraft
  • (3) Reduced frequency
  • (4) Suspended routes
    Midnight flights will be suspended due to changes in the market demand.
Top Copyright Photo (all others by ANA): ANA (All Nippon Airways) Boeing 787-8 Dreamliner JA823A (msn 42246) “787” HND (TMK Photography). Image: 945375.
ANA aircraft slide show:
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First Look: The first ANA Airbus A380 is rolled out of the paint shop

Airbus has rolled out of the paint shop the first Airbus A380. The pictured A380-841 JA381A (msn 262) is also the first A380 in the new special livery (Lani).

Top Photo: Airbus.

Previously ANA made this announcement about the upcoming Airbus A380 service and special liveries:

All Nippon Airways (ANA), Japan’s largest and only 5-Star airline, has announced the features of Japan’s first Airbus A380, launching in spring 2019.

This aircraft will be introduced on ANA’s Tokyo – Honolulu service, and each cabin is specially designed to meet the passenger’s needs on this route. Honolulu is loved by many Japanese families, couples, newlyweds, and Hawaii is a popular destination for their vacations and honeymoons. With this in mind, ANA aims to make their experience onboard more comfortable by strategically designing the cabin features in order to meet their unique needs while providing them with a once in a lifetime experience.

  • 1.Three Designs for the Special Livery Aircraft
    In March 2017, ANA announced the special livery motif FLYING HONU. At the time, the design ANA introduced was blue, an homage to the Hawaiian blue sky. ANA is pleased to announce two more colors, green and orange. The emerald green is inspired by the crystal clear waters of the Hawaiian ocean and orange is a reference to the beautiful Hawaiian sunset.In order to make this triad, the FLYING HONUs, more familiar to everyone, ANA has created a character from each aircraft. The blue character is named “Lani,” meaning sky, while the emerald green character is named “Kai,” meaning ocean, and the orange character is named “Ka La,” from the Hawaiian word meaning sunset.

  • 2.Configuration and Seat Products

    In order to provide the perfect trip, ANA has designed each cabin to accommodate a host of needs for passengers of all ages. For example, on the upper deck, ANA has introduced eight First Class seats, 56 Business Class seats, and 73 Premium Economy seats.

    This marks the first time ANA has offered First Class on this resort route, and its aim is to provide passengers with a luxurious onboard experience. Each seat features its own door and provides passengers with the privacy they need to enjoy their personal space.

    ANA’s Business Class is a popular option for passengers on honeymoons and family vacations. Therefore, compared to other aircraft where seats are staggered, this revolutionary Business Class offers pairs of seats, allowing passengers to enjoy and share their exciting travel experience sitting next to each other while still keeping all seats with aisle access.

    Furthermore, while Premium Economy on other aircraft has about 20 seats, the FLYING HONUs offer 73, allowing more passengers the opportunity to experience the premium features.

    The main deck will have 383 Economy Class seats, which includes 60 couch seats. This makes ANA the first in Japan to introduce a couch seat concept. Each couch is comprised of three or four seats and passengers are able to lie on the seats by folding up the leg rests. In addition, passengers will receive a dedicated mattress that will provide them with further comfort. This new seat concept will especially enable passengers traveling with small children to have a more relaxed experience in the cabin.

  • 3.Cabin Interiors
    The cabin interiors have also been strategically designed in order for the passengers to feel the spirit of Hawaii from the moment they board the aircraft. The walls and lights have been arranged in such a way as to illustrate Hawaii’s enviable blue skies, sunrises, sunsets, night skies and iconic rainbows.

    • All classes will have access to bar counters. Lastly, behind the main deck, ANA has created a multi-purpose room where new mothers will be able to tend to their babies and passengers will be able to change before arriving at their destination.

    • 4.Concept

      ANA also created a new concept name called “ANA HAWAii.” By flipping the “ii” 180 degrees, it turns into two exclamation points. This symbolizes the numerous excitements that passengers are able to experience including cabin features, and promotions, as well as the grand opening of a new ANA Lounge at Honolulu Airport.

    All images by ANA.

New ANA Video: Funny or Racist? ANA Group releases its summer domestic schedule

ANA (All Nippon Airways) (Tokyo) has introduced this new TV commercial (above) mainly for the domestic Japanese market. The airline in the TV ad is boasting about its international expansion and jokingly suggests it needs to become more international in its appearance. The ad also pokes fun at Westerners. Reactions are on the two ends of the spectrum, either funny or stereotypical racist. There does not appear to be a middle ground of opinions.

My take: Advertising is meant to grab the attention of the viewer. This ad certainly has grabbed the attention of viewers, both in Japan and worldwide. Is it a plus for ANA? Maybe. Time will tell, especially since everything produced today is now worldwide in consumption. There are no barriers on the Internet. Things meant for domestic consumption become an international viral hit in a short amount of time. Personally, I find it very funny. We all need to laugh at ourselves more. What do you think?

In other news, the ANA Group has presented its domestic timetable effective on March 30, 2014 for the summer season:

ANA Group, Japan’s largest airline group, today announces that it has submitted its proposed route network for the summer timetable commencing March 30, 2014 to October 25, 2014 to the Ministry of Land, Infrastructure, Transport and Tourism in Japan.ANA continues to further expand its network and improve competitiveness in order to survive in what is an increasingly competitive industry.

Details of the service are as follows:
(Subject to approval by relevant authorities)
● Newly Launched & Increased Frequency & Resumed Service

*1 Flight frequency is 4/day during September 1 – October 25.
*2 Seasonal operation during the period.● Decreased Frequency

*3 Seasonal decrease of frequency during the period.
*4 Flight frequency is 8/day during March 30 – June 30, and 5-7/day during July 1 – October 25. For details please visit our website.
*5 Flight frequency is 7/day during March 30 – June 30, and 6/day during July 1 – October 25.

● Route Suspension

*6 Code-sharing flight with IBEX Airlines (1/day) will continue to be served.

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