Hisane Masaki, Special Correspondent | Jan 31, 2012 9:38AM EST
All Nippon Airways’ net profit fell 10 percent in first nine months of fiscal 2011, which ended June 30, despite revenue expanding 3 percent at Japan’s largest airline in the same period.
ANA’s profit fell to $443.4 million on revenue of $14.08 billion. The company posted a group operating profit $1.2 billion in the April-December period, up 17.3 percent from a year earlier.
“Japan’s economy continues to recover gradually from the Great East Japan Earthquake on March 11 last year, but the outlook globally remains uncertain owing to rising oil prices, the government bond crisis affecting the Eurozone and exchange rate fluctuations,” ANA said in an earnings release.
ANA said it will roll out $39.2 billion in “emergency cost improvement measures to minimize the impact on revenues,” the carrier said.
ANA’s group revenue from its international cargo operations rose 3.2 percent in the April-December period from a year earlier to $882.89 million. ANA’s group revenue from its domestic cargo operations also increased 3.7 percent to $334.21 million in the same period.
The company said the production of automotive and electronic parts was recovering faster from earthquake-caused supply chain disruptions faster than expected.
“ Nevertheless, with the yen hitting a record high beginning in the summer, factory production began to shift overseas, creating difficult market conditions for air cargo out of Japan in particular, though ANA was able to capture sufficient export volume by expanding the range of cargo it handles,” the carrier said.
ANA revised upward its group operating profit forecast for the whole of fiscal 2011, which was announced on Oct. 28, but left its full-year group revenue and net profit forecasts unchanged.
The airline’s current projections for fiscal 2011 are: $18.42 billion in operating revenue, up 3.1 percent from fiscal 2010; $1.18 billion in operating profit, up 32.6 percent from fiscal 2010; and $263.16 million in net profit, down 14.2 percent from fiscal 2010.
Contact Hisane Masaki at yiu45535@nifty.com.