LONDON – On August 1, the Japanese group, All Nippon Airways Holdings, also known as ANA released its second quarter (Q2) 2022 financial position.
Their Q2 Position
ANA has reported that for the first time in 10 quarters, they have finally returned back to profit, as well as their operating cash flow getting ever-closer to pre-pandemic levels in their latest first quarter of the fiscal year 2022 financial standings that ended on June 30, 2022.
The group has achieved operating revenue of 350.4 billion yen, which is a large increase of 176% when compared to Q1 2021’s standing of 198.9 billion yen. However, it is worth noting that their operating expenses, along with many other airlines, have also increased, to 351.7 billion yen. This is a 133% increase in expenses compared to Q1 2021’s figure of 263.5 billion yen.
Due to the increase in operating expenses, their operating income stood at a negative 1.3 billion yen, however, with their other and ordinary income both totalling 10 billion yen, this has resulted in the group achieving a positive net income, attributable to owners of the parent of 1 billion yen.
Broken down into each of their business segments, the carrier’s revenue was as follows;
- Air Transportation – Revenue stood at 314.2 billion yen with an operating loss of 1.9 billion yen, however, this is a significant improvement when compared to Q1 2021’s figures of revenue at 170.1 billion yen with an operating loss of 67.6 billion yen.
- Airline Related – Revenue stood at 55.4 billion yen with an operating income of 1.9 billion yen, interestingly the revenue is up by 2 billion yen this year, but the income was down 3.1 billion yen when compared to Q1 2021 figures of 53.3 billion yen as the revenue and 5.1 billion yen as the operating income.
- Travel Services – Revenue stood at 13.9 billion yen with an operating loss of 0.5 billion yen, another interesting figure where operating revenue was up when compared to Q1 2021 at 9.1 billion yen, but the operating loss was worse with 2021’s figure being only a loss of 0.1 billion yen.
- Trade and Retail – Revenue stood at 22.4 billion yen with an operating income of 0.5 billion yen. Again a small increase when compared to Q1 2021’s levels of 19.1 billion yen of revenue with an operating loss of 0.1 billion yen.
- Others – Revenue stood at 8.9 billion yen with an operating income of 0.2 billion yen, a small increase in revenue compared to the 8.5 billion yen in Q1 2021, whereas both operating incomes remained the same.
Thanks to an increase in demand for ANA, their load factor for international services rose to 70.7%, again a figure close to pre-pandemic levels (2019), with domestic passenger numbers also on the rise by 2.1 times.
Commenting on ANA’s Q1 2022 results, their Executive Vice President and Group Chief Financial Officer, Kimihiro Nakahori, has said, “We are pleased to see the results of the first quarter with the increased passenger demand for domestic and international travel, and increased revenue in all of our business segments.”
“These results are a demonstration of the committed efforts by the global ANA team and help to position us to continue to meet our customers’ needs amid this challenging operating environment.”
It is great to see that ANA is finally returning to profit after quite a few years of losses due to the Covid pandemic. It will certainly be interesting to see how the remainder of their years pans out and if their profitability continues to increase as the months go by.