ANA, JAL report mixed fiscal 2014 results

ANA, JAL report mixed fiscal 2014 results

ANA Holdings and Japan Airlines posted mixed earnings results in the fiscal year ended March 31, even as the two biggest Japanese air carriers saw their international cargo revenues soar.

In fiscal 2014, ANA Holdings, the largest Japanese airline group and parent firm of All Nippon Airways, booked a jump of about 8 percent in net profit, while JAL, the former Japanese national carrier, incurred a sharp decline of about 10 percent in net profit.

ANA Holdings and JAL both announced their earnings results for fiscal 2014 on Thursday.

ANA Holdings posted a group net profit of 39.239 billion yen (US$327 million) in fiscal 2014, up 7.8 percent from the previous fiscal year. Its group revenue from overall operations climbed 9.1 percent year-over-year in fiscal 2014 to 1.713 trillion yen.

In an earnings release, ANA Holdings attributed its strong performance in fiscal 2014 to “further expansion of the group’s international route network, tight cost control and the continued gradual recovery of the Japanese economy.”

ANA Holdings’ group revenue from international cargo operations soared a whopping 19.1 percent in fiscal 2014 from a year earlier to 124.7 billion yen. Its group revenue from domestic cargo operations edged up 1.5 percent to 32.5 billion yen.

“Domestic cargo revenue rose year-over-year as ANA captured demand from courier services and freight shippers connecting with international flights arriving at and departing from Haneda,” ANA Holdings said.

“International cargo services benefited from buoyant volumes on flights from Japan to North America and Asia as well as from Asia and Europe to Japan, and also strong demand from shippers in Asia and China to route cargo bound for North America and Europe via Japan,” it said.

“The cargo network was expanded through the introduction of a 10th cargo freighter. ANA also began a joint venture with Lufthansa Cargo AG on flights from Japan to Europe,” ANA Holdings said.

ANA Holdings forecasts 1.790 trillion yen in group operating revenue for fiscal 2015, up 4.5 percent from fiscal 2014, and 52.000 billion yen in group net profit, up 32.5 percent from fiscal 2014.

Meanwhile, JAL said it posted a group net profit of 149.045 billion yen in fiscal 2014, down 10.3 percent from the previous fiscal year. Its group revenue from overall operations rose 2.7 percent year-over-year to 1.344 trillion yen.

JAL’s group revenue from international cargo operations surged 11.2 percent in fiscal 2014 from a year earlier to 60.3 billion yen. Its group revenue from domestic cargo operations dropped 4.5 percent to 24.2 billion yen.

“We aggressively captured automobile-related shipments, etc., from Japan spurred by the growth in exports especially to North America and efficiently captured transit shipments to maximize revenue,” JAL said in an earnings release.

“As a result, the volume of international cargo handled during the reporting period in terms of RCTK (revenue cargo ton-kilometer) increased 16.0 percent year-over-year,” the carrier said.

“Domestic cargo operations were affected by a modal shift from surface transportation to air transportation due to a shortage of trucks,” JAL said. “However, due to the decrease in supply, the volume of domestic cargo handled during the reporting period when measured in RCTK decreased by 2.8 percent year-over-year.”

JAL expects 1.328 trillion yen in group operating revenue for fiscal 2015, down 1.2 percent from fiscal 2014, and 144.000 billion yen in group net profit, down 3.4 percent from fiscal 2014.

JAL filed for bankruptcy protection in January 2010 under the Corporate Rehabilitation Law, which is similar to Chapter 11 in the U.S., marking one of the biggest corporate failures in Japanese history. JAL shares were delisted from the Tokyo Stock Exchange the following month. But the carrier flew out of bankruptcy protection in March 2011 and relisted on the TSE in September 2012.

Contact Hisane Masaki at yiu45535@nifty.com.