All Nippon Airways posts fiscal Q1 net profit of Y600m

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All Nippon Airways (ANA) swung to a net profit of yen (Y) 600 million ($7.67 million) for its fiscal first quarter, from a net loss of Y8.4 billion a year ago.

Operating revenue for the three months ended 30 June grew by 12.5% to Y343 billion, while operating expenses were up by 6% to Y332 billion, the Star Alliance carrier says.

ANA reported an operating profit of Y11 billion, a reversal from an operating loss of Y8.1 billion a year ago.

In terms of passenger traffic, domestic RPKs increased by 16%, while international RPKs grew by 24.6%. Domestic passenger numbers climbed by 16.4% to 9.5 million and international passenger numbers rose by 25% to 1.59 million.

Domestic capacity, as measured in ASKs, grew by 6.9% and international capacity rose by 8.8%. The load factors on domestic and international routes grew by 4.6 percentage points to 58.2% and by 9.6 percentage points to 75.3% respectively.

On the cargo front, domestic freight carried declined by 1.7% to 106,000t and international freight carried rose by 4% to 146,000t.

For the fiscal year 2012, the carrier expects its net profit to grow by 11.8% year on year to Y40 billion. It forecasts a 12.9% increase in its operating income to Y110 billion and an 88.4% surge in operating revenue to Y1.5 trillion.

ANA says that the outlook for the Japanese economy is for a gradual continued recovery backed by reconstruction demand from the Great East Japan Earthquake, despite rising oil prices, exchange rate fluctuations and restrictions on the supply of electric power.

In FY2012/13, the carrier aims to establish a multi-brand strategy, improve its cost-competitiveness through structural reforms and move towards a holding company structure.