The economic climate remains gloomy for the airline ANA which provides an outlook for its business over the coming months.
In a note published on the occasion of the publication of its financial results for fiscal year 2021 (1/04/21 to 31/03/22), the carrier continued to see its results impacted by Covid restrictionsparticularly its international business.
Compared to fiscal year 2019, the number of passengers transported internationally remained 92% lower in fiscal year 2021. The average aircraft load factor was 27%. Revenues from international business plunged from US$4.73 billion in FY2020 to US$540.4 million in FY2022. However, they had reached an all-time low of 344.6 million US$ in 2020 (at an exchange rate of 129 Yen to the dollar).
ANA's Europe without Paris and London
On this figure, Europe's share has fallen steadily. The continent accounted for just 14.7% of international revenues in fiscal year 2022.. This compares with 19.6% before the pandemic. This fall can be explained in particular by the withdrawal of two of the airline's flagship European routes from Tokyo Haneda (HND) to London Heathrow and Paris-CDG.
These routes were not operated for the whole of the 2021 financial year. And they will remain suspended due to the closure of Russian airspace. These routes remain heavily loss-making due to soaring oil prices, the weakening yen and competition on the route. From Paris, Air France and JAL both operate to Tokyo.
ANA continues to provide connections on Brussels-Tokyo Narita and on Frankfurt-Tokyo Haneda. On these routes, the carrier "uses other flight routes to bypass Russian airspace", explains the report.
However, the company is anticipating a return to international demand with the easing of entry restrictions in Japan in March contributing to the rise in demand. ANA estimates that in fiscal year 2022, it should carry international passenger traffic equivalent to 45% in fiscal year 2020.. This represents an increase of 320% in passenger numbers and 232% in revenue. The private carrier also hopes that other measures will soon be taken to open up Japan to the rest of the world.
From his side, Japan Airlines has also reduced its services in Europe due to the closure of Russian airspace. Instead of one daily flight between Paris CDG and Tokyo Haneda, JAL is now offering just 17 frequencies in May.. And it has already announced the cancellation of 9 flights in June from the French capital.
