ANA international cargo revenues fell 3.4% to Y138.4bn in nine months despite tonnage rising 3.5%, as US tariffs reduced premium automotive demand
All Nippon Airways (ANA) saw international cargo revenues decline despite a volume increase over the first nine months of the year, while Nippon Cargo Airlines saw volumes affected by US tariffs.
ANA saw international cargo revenues decline 3.4% year on year to Y138.4bn during the first nine months of the financial year (running 1 April to 31 December) but international cargo tonnage increased 3.5% to 551,000 tonnes.
The revenue decline was due to a drop off in demand in some of the firm’s higher-paying business segments.
”International freight carried increased year on year due to stronger demand for shipments from Asia to North America,” ANA Holdings said. ”However, revenue declined year over year, reflecting reduced automotive-related cargo and e-commerce demand.
"Cargo demand from China to North America via Japan, previously declined due to the US tariff policies, is showing signs of recovery."
On the domestic front, nine month cargo revenues were down 1% year on year to Y17.3bn and domestic cargo tonnage fell 1.8% to 206,000 tonnes.
In response to the changing market conditions, the company said that it adjusted freighter routes and capacity in response to demand fluctuations.
On North American routes, ANA "further enhanced profitability" by continuing to operate charter flights for other carriers.
NCA performance
Meanwhile, sister airline NCA saw demand fall as a result of US tariffs. At this stage, year-on-year comparisons are not possible as ANA Holdings' acquisition of NCA was only completed in August last year, however, revenues over the first nine months of the financial year totalled Y75.3bn and cargo tonnages stood at 217,000 tonnes.
"NCA experienced a decline in trilateral cargo demand from China to North America via Japan, due to the US tariff policies, though demand has begun to recover," ANA holdings said.
"Concurrently, since October, NCA has proactively secured strong cargo demand from Asia to Europe and North America."
During the period, NCA launched the Narita-Frankfurt route in September and from October, extra flights were operated on key routes, including Narita to Hong Kong and Narita to Los Angeles, to "optimise revenue".
NCA began code-sharing with ANA on European and North American routes in October and will "continue strengthening collaboration to enhance the Group's cargo business and deliver high-quality, competitive services".
