ANA (9202) Q1 2024 earnings summary

Executive summary

• Operating revenues for Q1 FY2024 reached ¥516.8Bn, up 12.1% year-over-year, marking a record high driven by strong airline demand.

• Operating income declined 30.7% year-over-year to ¥30.4Bn, and net income attributable to owners fell 19.5% to ¥24.7Bn due to higher maintenance and personnel costs.

• Comprehensive income decreased 16.3% year-over-year to ¥49.1Bn.

• Recovery in passenger and cargo demand continued, with strong international and domestic passenger growth and robust international cargo performance.

• The Japanese economy showed gradual recovery, but the airline business faced cost pressures and geopolitical risks.

Financial highlights

• Operating income margin fell to 5.9% from 9.5% year-over-year.

• EBITDA for Q1 FY2024 was ¥66.8Bn, down ¥12.3Bn year-over-year, with an EBITDA margin of 12.9%.

• Shareholders' equity increased to ¥1,078.1Bn, with the equity ratio at 29.5%.

• Interest-bearing debt decreased by ¥33.8Bn to ¥1,450.1Bn; net debt/equity ratio improved to 0.1.

• Free cash flow was negative ¥89.1Bn due to higher investment outflows; cash and cash equivalents at period end: ¥859.5Bn, down ¥143.0Bn.

Outlook and guidance

• FY2024 revenue forecast is ¥2,190Bn (+6.5% YoY) with net income forecast at ¥110Bn (−30.0% YoY); no change to earnings or dividend forecasts.

• Net income per share for FY2024 projected at ¥234.02.

• Management notes steady progress in line with the business plan, despite a year-over-year decline in operating income.

• Forward-looking statements highlight risks from market volatility, fuel prices, foreign exchange, and regulatory costs.