Cargo revenues down at ANA as currency and oversupply hit results
05 / 08 / 2016
ANA’s cargo business recorded a double-digit decline in airfreight revenues during its first fiscal quarter despite an increase in traffic.
During its fiscal first quarter ended June 30, the Japanese carrier saw airfreight demand increase 16.2% year on year to 1.1bn freight tonne km, while revenues declined by 23.6% on a year earlier to Y27.5bn.
Revenues on domestic services were largely flat during the quarter at Y7.1bn, while international services recorded a 29.1% decrease to Y20.4bn.
Traffic on domestic services was also flat at 105m FTK and international traffic increased 15.6% to 980m FTK.
The airline said its domestic cargo services recorded flat volumes despite initiatives to capture demand principally in the home parcel delivery business.
This was due to low overall demand for air cargo in part as a result of a reduction in the volume of fresh produce originating in Hokkaido.
In international cargo services ANA said it captured demand from China and other Asia destinations to North America via Japan and well as intra-Asia demand. However, growth on deliveries to and from Japan was limited.
It said the revenue decline was down to the continued appreciation of the yen, declining unit prices due to deterioration in the supply-demand environment, principally for flights departing China, and a change of the agency commission settlement scheme.