Company Reports

ANA Holdings’ full-service passenger airline operations should continue to dominate and underpin the group’s revenue and profit. Management is focused on expanding its international passenger services as it reestablishes its international trunk routes post-coronavirus. It expects Japan’s inbound tourism to continue to outpace outbound growth and anticipates that it will also need to provide services to inbound tourists to secondary locations in Japan beyond the current key portals of Tokyo and Osaka. ANA focuses on a dual-brand strategy with Peach, its low-cost carrier product, to maximize aircraft utilization and improve its market positioning.

ANA's fiscal first-quarter net profit of JPY 19.4 billion is down 15% year on year, due mainly to higher fuel costs following the jump in oil prices on Iran war risks. The JPY 32 billion fuel cost impact is less than ANA's JPY 60 billion full-year guidance.

ANA Holdings’ full-service passenger airline operations should continue to dominate and underpin the group’s revenue and profit. Management is focused on expanding its international passenger services as it reestablishes its international trunk routes post-coronavirus. It expects Japan’s inbound tourism to continue to outpace outbound growth and anticipates that it will also need to provide services to inbound tourists to secondary locations in Japan beyond the current key portals of Tokyo and Osaka. Air Japan, which was launched to capture demand growth from inbound travel to Japan from Southeast Asia, will cease operations in March 2026 as ANA focuses on a dual-brand strategy with Peach, to maximize aircraft utilization and improve its market positioning.

ANA's fiscal 2025 (ended March 2026) revenue rose 12% to JPY 2,539 billion, with an operating margin of 8.6% exceeding guidance. Management expects a JPY 60 billion earnings hit from the Iran war, guiding to a 5.4% fiscal 2026 operating margin. Shares traded flat after the results.

Share prices of ANA, Cathay Pacific, and Singapore Airlines are falling 5%-7% in reaction to the rise in oil prices due to the outbreak of the war in Iran. The Brent crude futures price has gained 31% year to date to over $79 per barrel on the risk of disruption to Iranian oil output.

ANA's December-quarter revenue of JPY 687 million improved 14% year on year, while operating income came in at JPY 83 billion, up 53% year on year. The company released its value creation roadmap for 2030, highlighting share buybacks and clearer profitability targets.

Over the weekend, Airbus ordered immediate software rollbacks and repairs to 6,000 A320 family jets following an incident involving a sharp loss of altitude. Asian airlines in our coverage, ANA Holdings, Cathay Pacific, and Singapore Airlines, are among carriers with A320s in service.

ANA reported record first-half revenue of JPY 1,190.4 billion, up 8.3% year over year, and raised its full-year (ending March) operating income guidance by 8% to JPY 200 billion. Results reflect the consolidation of Nippon Cargo Airlines from the second quarter.

ANA Holdings’ full-service passenger airline operations should continue to dominate and underpin the group’s revenue and profit. Management is focused on expanding its international passenger services as it reestablishes its international trunk routes post-coronavirus. It expects Japan’s inbound tourism to continue to outpace outbound growth and anticipates that it will also need to provide services to inbound tourists to secondary locations in Japan beyond the current key portals of Tokyo and Osaka. Air Japan, which was launched to capture demand growth from inbound travel to Japan from Southeast Asia, will cease operations in March 2026 as ANA focuses on a dual-brand strategy with Peach, to maximize aircraft utilization and improve its market positioning.

We raise our in-house oil price assumptions, which guide the fuel price forecasts for Asian airlines in our coverage, specifically ANA Holdings, Cathay Pacific, and Singapore Airlines.

ANA reported first-quarter fiscal 2025 (ending March 2026) revenue of JPY 548.7 billion, up 6% year on year, largely driven by a 7% increase in capacity. Operating margin came in at 6.7%, up from 5.9% a year ago.

In June 2025, ANA signed a firm order for 24 A321neo and three A321XLR aircraft during the Paris Air Show and announced expanding its partnership with Trip.com to 11 additional markets. Separately, its share exchange date to take over Nippon Cargo Airlines, or NCA, is postponed again, to Aug. 1.

Escalating tensions between Israel and Iran triggered airspace closures across the Middle East on June 23, forcing airlines to cancel, divert, or reroute flight paths. As of 25 June, midday, all countries except Iran have reopened their airspaces.

ANA Holdings’ full-service passenger airline operations should continue to dominate and underpin the group’s revenue and profit. Management is focused on expanding its international passenger services as it reestablishes its international trunk routes post-coronavirus. It expects Japan’s inbound tourism to continue to outpace outbound growth and anticipates that it will also need to provide services to inbound tourists to secondary locations in Japan beyond the current key portals of Tokyo and Osaka. To capture demand growth from inbound travel to Japan from Southeast Asia, ANA is launching the Air Japan brand. Air Japan is expected to compete with Singapore Airlines’ Scoot and Japan Airlines’ Zipair.

ANA reported fiscal 2024 (ended March 2025) revenue of JPY 2.3 billion, up 10% year on year, with operating margin coming in at 8.7%. Management has guided for fiscal 2025 revenue growth of 8.1% and operating margin of 7.8%.

Share prices of ANA, Cathay Pacific and Singapore Airlines are down 5%, 16% and 7% respectively, hovering around recent lows as worries grow over potentially lower air travel demand. We revise our Morningstar Uncertainty Ratings ahead of third-quarter results and April operating statistics releases.

ANA Holdings’ full-service passenger airline operations should continue to dominate and underpin the group’s revenue and profit. Management is focused on expanding its international passenger services as it reestablishes its international trunk routes post-coronavirus. It expects Japan’s inbound tourism to continue to outpace outbound growth and anticipates that it will also need to provide services to inbound tourists to secondary locations in Japan beyond the current key portals of Tokyo and Osaka. To capture demand growth from inbound travel to Japan from Southeast Asia, ANA is launching the Air Japan brand. Air Japan is expected to compete with Singapore Airlines’ Scoot and Japan Airlines’ Zipair.

ANA posted better-than-expected December third quarter net profit of JPY 53.2 billion, down 9.3% year on year but nearly double prepandemic levels. Management has raised its fiscal March 2025 net profit guidance for the second time to JPY 140 billion from JPY 120 billion and JPY 110 billion prior.

ANA Holdings’ full-service passenger airline operations should continue to dominate and underpin the group’s revenue and profit. Management is focused on expanding its international passenger services as it reestablishes its international trunk routes post-coronavirus. It expects Japan’s inbound tourism to continue to outpace outbound growth and anticipates that it will also need to provide services to inbound tourists to secondary locations in Japan beyond the current key portals of Tokyo and Osaka. To capture demand growth from inbound travel to Japan from Southeast Asia, ANA is launching the Air Japan brand. Air Japan is expected to compete with Singapore Airlines’ Scoot and Japan Airlines’ Zipair.

ANA Holdings’ full-service passenger airline operations should continue to dominate and underpin the group’s revenue and profit. Management is focused on expanding its international passenger services as it reestablishes its international trunk routes post-coronavirus. It expects Japan’s inbound tourism to continue to outpace outbound growth and anticipates that it will also need to provide services to inbound tourists to secondary locations in Japan beyond the current key portals of Tokyo and Osaka. To capture demand growth from inbound travel to Japan from Southeast Asia, ANA is launching the Air Japan brand. Air Japan is expected to compete with Singapore Airlines’ Scoot and Japan Airlines’ Zipair.