ANA Holdings sees record operating profit within 5 years
12:01 JST, May 26, 2022
TOKYO (Jiji Press) — ANA Holdings Inc. will set a target of posting a record group operating profit of ¥200 billion within five years under a new medium-term business strategy, CEO Koji Shibata said in an interview with Jiji Press.
The parent of All Nippon Airways will also target sales of ¥2 trillion under the strategy covering three to five years from April 2023, hoping to realize the targets early, Shibata said Monday.
The airline plans to draw up the new business strategy by the end of March 2023.
ANA posted a record operating profit of ¥165 billion in the year ended in March 2019 thanks to growth in the number of foreign visitors to Japan, domestic flight passengers and business travelers. Sales also hit a record ¥2,058.3 billion.
The company reported an operating loss in two consecutive years through March 2022 as passenger traffic plunged due to the COVID-19 pandemic.
For the current year that started last month, ANA expects a recovery in demand, projecting sales of ¥1.66 trillion and an operating profit of ¥50 billion.
In the interview, Shibata said, “We want to achieve our earnings targets as quickly as possible to pave the way for our next step,” in anticipation of a recovery in international flight demand and growth in nonairline operations targeting frequent flyer program members.
Noting that ANA has stepped up efforts to curb labor costs and reduce its fleet of aircraft over the past two years, Shibata said, “We have strengthened our cost structure for generating profits,” showing his confidence in achieving a record profit. ANA aims to raise its operating profit margins to 10% from some 8% before the pandemic.
The company plans to win more customers for All Nippon Airways, low-cost carrier Peach Aviation and AirJapan, which operates medium-distance international flights.
The new business strategy is also expected to include stepped-up human resources development and the promotion of digital reform in a bid to improve productivity.
Check-in machines to be removed
ANA Holdings Inc.’s All Nippon Airways said Tuesday it will remove automatic check-in machines for domestic flights from airports in Japan in fiscal 2023 and introduce a new mobile check-in service instead.
The 437 check-in machines will be phased out at 51 airports in the country in the year starting next April.
The airline will refurbish its smartphone app to allow customers to check in online 24 hours before their flight. They will be able to obtain mobile boarding passes via the app and skip procedures at check-in counters.
The move is part of the airline’s effort to reduce congestion and enhance contactless services amid the COVID-19 pandemic. Check-in counters will remain available for those who do not use the app. The airline aims to have 90% of passengers use the app check-in service at the end of fiscal 2026.
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