Category Archives: ANA Holdings

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 commits to adding up to 20 Boeing 787 Dreamliners

Boeing and ANA Holdings (ANA HD) announced the Japanese airline group has decided to acquire up to 20 more 787 Dreamliner airplanes.

The agreement with Boeing includes 11 787-10s, one 787-9 and options for five 787-9s valued at more than $5 billion at list prices. The airline also plans to acquire three new 787-9 airplanes from Atlantis Aviation Corporation.

 

Once the agreements are finalized, it will be ANA’s sixth order for the ultra-efficient and passenger-pleasing Dreamliner and bring their overall 787 order book to more than 100 airplanes.

With this order, the airline will add 11 of the largest and most fuel-efficient Dreamliner models, the 787-10 to its world-class fleet. Powered by a suite of new technologies and a revolutionary design, the 787-10 set a new benchmark for fuel efficiency and operating economics when it entered service in 2018. The airplane allows operators to achieve 25 percent better fuel efficiency per seat compared to older airplanes in its class.

ANA sees the 787-10 as the perfect airplane to replace previous domestic 777 models that are slated for retirement.

ANA became the global launch customer of the 787 Dreamliner when it placed its initial order in 2004. Since then, like half of all Dreamliner operators, the Japanese carrier has placed follow-on orders. However, ANA is in a class by itself as the world’s biggest 787 operator with 71 airplanes in its fleet and 12 more to be delivered prior to the latest agreement. The new deal will bring the 11 additional 787-10 airplanes, one 787-9 and options for five more 787-9 jets.

ANA is also in the launch customer group for Boeing’s new 777X.

ANA HD’s new 787 jets will be powered by GE’s GEnx-1B engines. The new engines will contribute to the 25 percent improved fuel efficiency per seat of the 787-10.

Image: Boeing.

ANA aircraft photo gallery:

 

ANA Holdings to order 48 Airbus and Boeing narrow body aircraft for ANA and Peach

ANA Holdings voted today at its board meeting to place an order for a total of 48 aircraft, which include 30 Boeing 737 MAX 8 and 18 Airbus A320neo. Deliveries are scheduled from FY2021 to FY2025.

The decision was based on the economic growth of Asia and emerging countries, with demand in the Asian aviation market and inbound demand on the rise. ANA HD and Peach Aviation Limited each selected its own optimum aircraft to fit its strategy to further grow. The specific markets that will be served by the new order have not been finalized.

Boeing 737 MAX 8, a first for a Japanese airline, is more spacious compared to the current aircraft and creates a comfortable atmosphere. The aircraft is also fuel efficient and is expected to improve the efficiency by approximately 15%. Given the plane’s benefits to the domestic market, it will succeed the current Boeing 737 NG series. ANA HD decided to place 30 aircraft on order, including 10 optional.

The Airbus A320neo, which currently serves ANA international routes, was chosen for its excellent fuel efficiency and cruising performance to support Peach’s current strategy, and an order for 18 aircraft will be placed.

ANA Group will maintain safety, which is the foundation of ANA Group’s business, enhance customer-oriented quality and service, and proactively invest to aircraft to steadily implement growth strategy.

It is official: Skymark Airlines turns to ANA, Japan returns to a duopoly

Skymark Airlines (Tokyo-Haneda) today (April 22) made it official. According to our partner ZipanguFlyer, the airline, Integral Corporation and ANA Holdings held a press conference today to announce the deal. As a result, Skymark Airlines will cease to be an independent carrier and  Japan will basically return to a two-airline group nation.

Read the full story from ZipanguFlyer: CLICK HERE

Skymark logo-1

ANA Holdings issued this statement:

ANA Holdings logo

Skymark Inc. (Skymark), Integral Corporation (Integral) and ANA Holdings Inc. (ANAHD) have today agreed upon and executed a memorandum of understanding (the “Memorandum”) stating that Integral and ANAHD will jointly support Skymark which is currently undergoing civil rehabilitation proceedings.

1. Background for the Execution of the Memorandum

Since the commencement order of the civil rehabilitation proceedings was announced on February 4, 2015, Skymark has signed a basic rehabilitation support agreement with Integral on February 5, 2015 and is working to quickly revitalize its business with Integral‟s support.

On February 12, 2015, Skymark appointed GCA Savvian Corporation as its financial adviser to broadly solicit and select sponsors who would be willing to support Skymark in its attempt to maintain and develop the value of Skymark‟s business. Following this selection process, Skymark has decided to appoint ANAHD to be the joint sponsor with Integral and has executed the Memorandum with Integral and ANAHD. ANAHD has experience with the rehabilitation of other Japanese airlines and has offered a wide range of support in sales, supplies and maintenance services to improve the value of Skymark‟s business.

ANAHD is the holding company of All Nippon Airways, ANA Wings, Air Japan Company Limited (full service carrier) Vanilla Air Inc. (a provider of low-cost carrier operations), ANA Sales Co., Ltd. (a travel business provider), All Nippon Airways Trading Company Limited (a trading business provider) and several other companies. ANAHD, whose mission statement is “Built on a foundation of security and trust, the „wings within ourselves‟ help to fulfill the hopes and dreams of an interconnected world,” is Japan‟s largest airline group, and has played a major role in Japan‟s air transportation services for over 60 years.

Beginning today, Skymark, Integral and ANAHD will, under the supervision of the Tokyo District Court and court appointed supervisor, hold detailed negotiations on the basis of the Memorandum and will execute sponsorship agreements and formulate a proposed rehabilitation plan (the “Proposed Rehabilitation Plan”) as part of the civil rehabilitation proceeding.

2. Main Points of the Memorandum

The Memorandum stipulates the basic conditions of the joint sponsorship by Integral and ANAHD of Skymark in order to achieve the revitalization of its business as an independent corporation, with shares issued by Skymark to be re-listed on the stock market as soon as possible.

The overview of the Memorandum is as follows;

(1) Capital Contribution and Payment of Debts

It will be stipulated in the Proposed Rehabilitation Plan that Skymark will perform a 100% capital reduction. After a confirmation order for the Proposed Rehabilitation Plan becomes final and binding, Skymark will perform a capital increase through the allocation of new shares. Integral, ANAHD and other entities will subscribe to these shares and become new shareholders.

The total amount of planned investment is 18 billion JPY, which will be used for the payment of debts (comprising common benefit claims, preferred claims and rehabilitation claims) outstanding at the time the confirmation order of the Proposed Rehabilitation Plan becomes final and binding.

The ratio of capital contributions and voting rights shall be apportioned such that Integral will hold 50.1%, ANAHD will hold a maximum of 19.9%, with other entities holding the remainder. Integral and ANAHD will mutually discuss the capital contribution by other entities and decide on such capital contribution by the time of submission of the Proposed Rehabilitation Plan.

In addition, Skymark is planning to execute commitment lines with financial institutions with the support of Integral and ANAHD to ensure that Skymark has the necessary working capital for its business operations.

  1. (2)  Board of Directors
    After the confirmation order of the Proposed Rehabilitation Plan becomes final and binding, the number of directors to the Board of Skymark will be 6. Of these, 3 will be appointed by Integral, 1 will be appointed by ANAHD and the remaining 2 will be decided after discussions between Integral, ANAHD and other contributors. It is contemplated that one of the directors appointed by Integral will be the Chairman and one of the directors appointed by ANAHD or other shareholders will be the President.
  2. (3)  Employment of Employees
    The employment of Skymark‟s employees will, as a general principle, be maintained.
  3. (4)  Re-Listing on the Stock Exchange
    Integral and ANAHD have agreed to make their best efforts and mutually cooperate to work to the common goal of improving the value of Skymark‟s business and to re-list the shares issued by Skymark on the stock market within 5 years of their investment

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-8Q8 JA737T (msn 35290) completes its final approach to the runway at Tokyo (Narita).

Skymark Airlines aircraft slide show: AG Airline Slide Show

AG Prints-6 Sizes

Is Skymark Airlines close to accepting ANA Holdings’ offer?

Skymark Airlines (Tokyo-Haneda) is reportedly close to accepting financial sponsorship from ANA Holdings, the holding company of ANA (All Nippon Airways) (Tokyo) according to this report by our partner ZipanguFlyer. The bankrupt company received bids from over 20 companies. ANA would co-sponsor the embattled carrier with investment fund Integral Corporation according to this report. An official announcement is expected next week.

Will Skymark be able to retain its independent brand or become part of the ANA feeder network?

Read the full report: CLICK HERE

Copyright Photo: Ivan K. Nishimura/AirlinersGallery.com. Under ANA, Skymark is very likely to remain a Boeing operator. Boeing 737-8HX JA73NL (msn 38104) passes through Honolulu on its long delivery route.

Skymark Airlines aircraft slide show: AG Airline Slide Show

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ANA firms up its order for seven additional Airbus A321s

ANA A321neo (82)(Flt)(Airbus)(LRW)

ANA Holdings (ANA-All Nippon Airways) (Tokyo) has firmed up an order for seven more A321 aircraft (four A321ceo with Sharklets and three A321neo), following the previous announcement in January this year. This firm order brings ANA’s total order for the A320 Family to 37 aircraft (26 A321neo, four A321ceo with Sharklet, and seven A320neo).

ANA Group will be the first Japanese carrier to operate three variants of the A320 Family, the A321neo, the A321ceo and the A320neo. With an optimised use of cabin space called ‘Cabin-Flex’, the A321neo will typically seat up to 240 passengers while maintaining Airbus’ standard comfort standard of at least 18 inch wide seats. The A321ceo will seat up to 220, and the A320neo up to 180 people.

Image: Airbus.

ANA aircraft slide show: AG Airline Slide Show