Summary ANA Holdings has capitalized on the end of COVID-19 border restrictions in Japan to achieve a record operating profit in 1H23, with increased revenue from both domestic and international travel.
Revenue from international operations more than doubled, accounting for 39% of total Air Transportation revenue, and the airline carried 3.47 million international passengers, leading to a significant increase in profitability.
Domestic revenue also rose by 33% with ANA’s domestic passenger numbers reaching 20.4 million, although business travel is yet to fully recover and weather disruptions impacted domestic services. Low-cost carrier Peach Aviation also experienced a robust recovery through increasing leisure demand on domestic and international routes.
ANA Holdings, the parent company of All Nippon Airways, has fully capitalized on the end of COVID-19 border restrictions in Japan to post a record operating profit in the six months ended September 30, 2023. Investors will be happy as, for the first time in five years, the airline is paying them a dividend on the result.
A complete turnaround
ANA Holdings reports financial years from April 1 – March 31, and last week, it released its results for the first six months of its fiscal year 2023. Between April 1 and September 30, 2023 (1H23), ANA recorded a record operating income of Y130 billion ($865 million), ordinary income of Y127 billion ($844m), and net income attributable to the owners of Y93 billion ($620 million). To illustrate the size of the gains this year, the corresponding figures in 1H22 were $208 million, $200 million, and $130 million.
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Operating revenue in 1H23 increased by 27% to Y1 trillion ($6.7 billion) with a record-breaking profit margin of 12.9%. ANA attributed the first-half results to solid growth in both domestic and international travel as passenger demand continued to recover steadily. Air transportation makes up 91% of the group’s revenue, and year-on-year, that increased by 28%, with gains coming from domestic and international services. In its announcement, ANA Holdings said:
All Nippon Airways Posts Record Revenue Operating Profit In Fiscal 1H
