MINATO (dpa-AFX) - Japan's largest air carrier All Nippon Airways (ALNPF.PK, ALNPY.PK), commonly called ANA, reported a 10 percent drop in earnings for the first nine months of the fiscal year 2011, mainly reflecting lower one-time gains. Recurring profit climbed from last year as revenues increased driven by improved results from international performance. Further, the company backed fiscal 2011 net profit and revenue forecast, while lifted operating income view. Net income for the nine months declined to 33.7 billion yen from last year's 37.5 billion yen. The third-quarter net income was 10.9 billion yen, down 13.3 billion yen from a year ago. The latest results included extraordinary gains of 0.4 billion yen, 82.6 percent lower than last year. Recurring profit climbed 22.5 percent to 71.4 billion yen and operating income increased 17.3 percent to 91.1 billion yen. Operating revenues for the nine months rose 3 percent to 1.07 trillion yen from last year's 1.04 trillion yen. Third-quarter revenues totaled 365 billion yen, up 10 billion yen from last year. For the nine-months, Air Transportation revenues increased, while revenues from travel services declined from last year. Domestic passenger revenue fell 1.1 percent as a result of the decline in air travel in the immediate aftermath of the Great East Japan Earthquake on March 11 last year. The number of passengers dropped 6.3 percent and available seat kilometers or capacity edged down 0.2 percent. Revenue passenger kilometer or traffic dropped 6.4 percent. Passenger load factor also fell to 61.3 percent from 65.3 percent a year ago. The domestic decline was more than offset by a 12.5 percent rise in passenger revenues on international routes driven by 10.1 percent rise in traffic and 17.8 percent growth in capacity. The company noted that business passenger demand largely recovered to pre-earthquake levels in June while leisure traffic returned to levels seen a year earlier over the summer months. Meanwhile, international load factor fell 5.1 percent to 72.8 percent. Cargo revenues also increased in both regions with higher volumes. Looking ahead for fiscal year 2011 ending March 2012, ANA maintained its forecast for net profit of 20 billion yen and operating revenues of 1.4 trillion yen. Meanwhile, the company revised upwards its forecast for operating income and recurring profit by 20 billion yen each, reflecting the strength of the yen as well as its different initiatives of 30 billion yen emergency program and the bringing forward of cost structure reforms due to be implemented in the next fiscal year. Operating income for the year is now expects to be 90 billion yen and recurring profit to be 56 billion yen. 'The Group expects to stimulate demand through initiatives such as the introduction of the Boeing 787 on new routes. However, this is likely to be offset by external factors such as the impact of the Thai flood and a worsening economic outlook in Europe because of the bond crisis,' the company said in its statement. ANA added that Japan's economy continues to recover gradually from the earthquake. ANA closed today's trading in Japan at 222 yen.
Copyright RTT News/dpa-AFX
