ANA Holdings Inc. (ANA HD) has reported its financial results for the year ended March 31, 2024, marking two financial milestones, with its highest operating income of 207.9 billion yen and the operating profit margin exceeding 10% for the first time. 

For that fiscal year, ANA said its operating revenue reached 2,055.9 billion yen (US$13.22 million) — significantly higher than the 1,707.4 billion yen (US$10.9 million) during the prior year.

In terms of its cargo business, ANA said volumes were lower as demand waned, but revenue in the fiscal year 2023 was still up from levels seen pre-COVID in 2019.

"For international cargo service, despite efforts to capture demand between North America and Asia, volume and revenue for international cargo decreased from the same period of the previous fiscal year due to a decline in market demand from major industries such as semiconductors, electronics and automotive-related industries," ANA said in a statement.

"Nevertheless, its revenue remained at approximately 1.5 times higher compared to fiscal year 2019," it added.

ANA said for the route network, the airline worked to ensure profitability by actively monitoring demand trends and flexibly adjusting the utilization of freighters.

Highest revenue ever seen for 2024

Looking ahead, ANA revenue is expected to increase, with 25.8 billion yen of growth in international passenger service due to increased operations despite the impact of yield normalization.

"Together with the increase in domestic passenger revenue of 24.0 billion yen and international cargo revenue of 28.4 billion yen, we are forecasting the highest revenue ever," ANA said.

It added that operating expenses are expected to increase by 171.9 billion yen due to an increase in costs linked to the scale of operations, a decrease in various tax exemptions and government subsidies, increased maintenance work curtailed by the COVID-19 pandemic, and investment in human capital.

Meanwhile, ANA said operating income is expected to decrease compared to fiscal year 2023 but will still be 170.0 billion yen, surpassing the highest record before the COVID-19 pandemic.