All Nippon Airways Stays Confident on Full-Year Earnings Despite Profit Drop

ANA Holdings, the parent company of All Nippon Airways (ANA), remains optimistic about its full-year earnings forecast despite a decline in half-year profitability. The Japanese airline cites strong demand for inbound tourism and domestic travel as key drivers for maintaining its outlook for the year ending in March 2025.

ANA has adjusted its full-year revenue target to ¥2.22 trillion ($14.5 million), slightly above the previously estimated ¥2.2 trillion ($14.4 million). This positive revision follows better-than-expected performance in both passenger and cargo services, which is expected to continue throughout the fiscal year.

In its latest financial report, ANA posted its highest-ever half-year operating revenue, reaching nearly ¥1.1 trillion ($7.2 billion) – a 9.7% increase compared to the same period in 2023. However, rising operational expenses and fuel costs have prevented the company from revising its profit forecast. ANA maintains its full-year operating profit outlook at ¥170 billion ($1.11 billion), consistent with prior expectations.

Operating costs for ANA Holdings increased by 13.6% to ¥991 billion ($6.54 billion), driven by higher maintenance expenses and investments in human resources. The company reported a half-year operating profit of ¥108 billion ($707 million), down 16.5% year-on-year due to faster-rising costs compared to revenue growth. Despite this, ANA remains optimistic, as profits are growing faster than initially forecast.

All Nippon Airways, ANA Holdings’ flagship airline, recorded a 12.3% increase in passenger numbers, reaching 3.9 million during the first half of the fiscal year. The airline’s capacity expanded by 8% on average, with international passenger revenue hitting a record ¥390 billion (£2.5 billion), representing an 8% increase from the previous year. Strong demand for both inbound and outbound travel to Japan fueled this growth, with domestic revenue also rising by 7% year-on-year.

ANA currently operates a fleet of 239 aircraft, ranging from the De Havilland Canada DHC-8-Q400 to three Airbus A380s that offer a four-class seating configuration for 520 passengers.

Within the broader ANA Group, budget carrier Peach Aviation achieved a 5.8% increase in revenue for the first half of the year. Peach prioritized its international routes, deploying its 36 Airbus A320 family aircraft to more lucrative international markets rather than focusing solely on domestic services. Despite a slight decline in passenger numbers, the airline expanded seasonal routes, such as Kansai to Memanbetsu and Kansai to Kushiro.

In an effort to enhance customer experience, Peach introduced the ‘Peach BAGGAGE TAG KIOSK’ in September 2024, allowing passengers to print baggage tags themselves for added convenience.

AirJapan, the newest low-cost long-haul division of ANA Holdings, began operations in February 2024. During the summer, AirJapan launched promotional campaigns aimed at attracting inbound travelers, including QR code payment options for ticket purchases in Japan, Thailand, and South Korea. The airline currently operates two Boeing 787-8 Dreamliners, configured for 324 passengers in an all-economy class layout.

Despite the recent decline in profitability, ANA Holdings remains confident in achieving its full-year earnings goals, supported by a strong recovery in travel demand and strategic initiatives across its group of airlines.

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