ANA (9202) Q3 2024 earnings summary

Executive summary

• Operating revenues for the nine months ended December 31, 2024, rose 10.3% year-over-year to ¥1,702.8 billion, driven by strong passenger and cargo demand and travel recovery.

• Net income attributable to owners was ¥134.0 billion, down 10.0% year-over-year; operating income declined 18.5% to ¥171.2 billion due to higher maintenance and personnel costs.

• Third quarter revenues reached a record high of ¥603.1 billion, up 11.5% year-over-year, but operating income declined 21.9% to ¥62.7 billion due to higher expenses.

• Comprehensive income for the period was ¥128.8 billion, down from ¥152.7 billion a year earlier.

• Company maintained inclusion in the Dow Jones Sustainability World Index for the eighth consecutive year.

Financial highlights

• EBITDA for the nine months was ¥282.2 billion, down 10.8% year-over-year; EBITDA margin fell to 16.6%.

• Shareholder's equity improved to ¥1,149.2 billion, with the equity ratio rising to 31.8%.

• Interest-bearing debt decreased by ¥124.4 billion to ¥1,359.5 billion; debt/equity ratio improved to 1.2x.

• Free cash flow for the nine months was negative ¥169.8 billion due to high capital expenditures and investment outflows.

• Dividend per share for FY2024 is forecast at ¥50.00, unchanged from previous guidance.

Outlook and guidance

• Full-year operating revenue forecast revised upward to ¥2,255.0 billion (+9.7% year-over-year), with operating income expected at ¥180.0 billion.

• Net income guidance raised to ¥140.0 billion, reflecting strong demand and compensation for aircraft/engine issues.

• Net income per share forecast at ¥297.86.

• FX rate assumption revised to ¥155/USD; Dubai crude oil assumption at $75/bbl.

• Strong passenger demand expected to continue in Q4, but cost pressures from FX and maintenance remain.