ANA Holdings aims to restore the domestic passenger business to a stable revenue base.
The company has analyzed the factors behind the decline in profitability as a supply-demand imbalance caused by a fleet composition that does not match demand, engine issues that have resulted in some aircraft being grounded, rising outsourcing costs due to labor shortages, the weaker yen, a 20–30 percent drop in business travel demand compared to pre-COVID levels, and demographic factors such as Japan’s declining population that are affecting the supply-demand balance.
Going forward, ANA plans to transform its effectively loss-making revenue structure through its own efforts, including downsizing aircraft by introducing Embraer E190-E2 aircraft, revenue management measures such as revising its fare structure and improving demand forecasting accuracy, reducing operating costs through labor saving, and capturing more inbound visitors to Japan, as well as through joint airport ground handling operations with Japan Airlines (JAL) and public support.
In terms of available seat kilometers (ASK), ANA plans to keep capacity in fiscal year 2028 at around the current level, and reduce it by 1 percent in fiscal year 2030. The company is targeting revenue of 775 billion yen in fiscal year 2028 and 780 billion yen in fiscal year 2030.
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