Two forces pulling in opposite directions
ANA Holdings Inc. (TSE: 9202) published consolidated first-quarter results for FY3/2027 on July 29, 2026, covering April 1 to June 30, 2026 under Japanese GAAP. Revenue rose 22.6% to ¥672,729 million while operating profit fell 43.5% to ¥20,782 million, ordinary profit 37.3% to ¥22,513 million and net profit attributable to shareholders 15.4% to ¥19,411 million. Earnings per share came in at ¥39.99 against ¥48.84.
The revenue surge and the profit slump have the same source in different columns. Air Transportation lifted revenue 24.9% to ¥620,800 million on strong international passenger and cargo demand plus the addition of Nippon Cargo Airlines, consolidated from July 2025. But segment profit fell 48.7% to ¥18,100 million as the fuel bill rose. Group operating margin dropped 3.6 points to 3.1%.
Inbound demand fills the widebodies
International passenger revenue on the ANA brand rose 20.0% to ¥247,600 million, with passengers up 14.3% to 2,363,462 and revenue passenger-kilometres up 11.6% against only 4.0% more seat-kilometres — so the load factor jumped 5.7 points to 85.1%. Management credits strong inbound demand and Japan-originating leisure travel, with seasonal capacity added on Narita–Bangkok from April and Narita–Vancouver from June.
Domestic passenger revenue was almost flat, up 1.1% to ¥163,600 million, though passengers rose 3.9% to 10,642,144 and the load factor gained 4.0 points to 75.6% on a network 1.1% smaller in seat-kilometres. From May 19 the airline replaced its domestic fare structure with three tiers — Simple, Standard and Flex. Peach, the group's low-cost carrier, lifted revenue 22.0% to ¥35,700 million with a load factor of 83.3%.
Cargo is now a two-airline business
International cargo revenue on the ANA brand rose 37.9% to ¥58,300 million on semiconductor-related demand and a recovery in North America-bound volume that US tariff policy had depressed a year earlier. Nippon Cargo Airlines added a further ¥50,400 million of cargo revenue plus ¥7,500 million of other revenue, with a weight load factor of 64.5%. The group is consolidating ANA Cargo, NCA and NCA Japan into a single company on April 1, 2027, and has already begun joint cargo-space management.
Away from flying, Airline Related lifted revenue 7.4% to ¥92,600 million and profit 54.3% to ¥4,900 million on international express cargo handling and more in-flight catering work for foreign carriers. Travel Services turned a ¥200 million loss into ¥100 million of profit on cost control despite revenue falling 9.3%. Trade & Retail grew revenue 7.9% to ¥37,400 million but saw profit fall 19.8% to ¥1,000 million as personnel costs rose.
Cash builds, net assets fall
Operating cash flow was ¥89,200 million and investing activities brought in ¥175,000 million, largely from securities redemptions, for free cash flow of ¥264,300 million; financing used ¥63,500 million. Cash and equivalents ended the quarter at ¥939,100 million, up ¥202,800 million from the start of the year, while interest-bearing debt rose ¥21,400 million to ¥1,193,100 million.
Total assets slipped 0.8% to ¥3,923,232 million. Net assets fell 6.3% to ¥1,408,299 million on dividend payments and a decline in deferred hedge gains, cutting the equity ratio 2.1 points to 35.6% and book value per share to ¥2,753.77 from ¥2,853.60.
Guidance held; dividend structure changes
ANA left its full-year plan unchanged: revenue of ¥2,770,000 million (+9.1%), operating profit of ¥150,000 million (−31.0%), ordinary profit of ¥137,000 million (−37.6%) and net profit attributable to shareholders of ¥96,000 million (−43.2%), for earnings per share of ¥209.26. The company does not publish a half-year forecast. The ordinary-share dividend forecast is ¥60.00 for the year — ¥30.00 interim plus ¥30.00 final — against ¥65.00 paid last year as a single year-end dividend. Holders of the first series of bond-type class shares are forecast to receive ¥87.50 twice, or ¥175.00 for the year, against ¥52.73 last year.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 672,729 | 548,701 | +22.6% |
| Operating profit (¥ million) | 20,782 | 36,786 | −43.5% |
| Operating margin | 3.1% | 6.7% | −3.6 pt |
| Ordinary profit (¥ million) | 22,513 | 35,919 | −37.3% |
| Net profit attrib. to owners of parent (¥ million) | 19,411 | 22,953 | −15.4% |
| Comprehensive income (¥ million) | −11,977 | 10,898 | profit to loss |
| EPS (¥) | 39.99 | 48.84 | −18.1% |
| Air Transportation — revenue (¥ million) | 620,800 | 496,800 | +24.9% |
| Air Transportation — segment profit (¥ million) | 18,100 | 35,400 | −48.7% |
| Airline Related — revenue (¥ million) | 92,600 | 86,200 | +7.4% |
| Airline Related — segment profit (¥ million) | 4,900 | 3,100 | +54.3% |
| Travel Services — revenue (¥ million) | 13,900 | 15,300 | −9.3% |
| Travel Services — segment profit (¥ million) | 100 | −200 | loss to profit |
| Trade & Retail — revenue (¥ million) | 37,400 | 34,700 | +7.9% |
| Trade & Retail — segment profit (¥ million) | 1,000 | 1,300 | −19.8% |
| International passenger revenue (¥ million) | 247,600 | 206,200 | +20.0% |
| International passenger load factor | 85.1% | 79.3% | +5.7 pt |
| Domestic passenger revenue (¥ million) | 163,600 | 161,900 | +1.1% |
| Domestic passenger load factor | 75.6% | 71.6% | +4.0 pt |
| International cargo revenue, ANA brand (¥ million) | 58,300 | 42,200 | +37.9% |
| NCA cargo revenue (¥ million) | 50,400 | — | new |
| Peach revenue (¥ million) | 35,700 | 29,200 | +22.0% |
| Total assets (¥ million) | 3,923,232 | 3,955,128 | −0.8% |
| Net assets (¥ million) | 1,408,299 | 1,502,633 | −6.3% |
| Equity ratio | 35.6% | 37.7% | −2.1 pt |
| FY3/2027 guidance — revenue (¥ million) | 2,770,000 | — | +9.1% |
| FY3/2027 guidance — operating profit (¥ million) | 150,000 | — | −31.0% |
| FY3/2027 guidance — ordinary profit (¥ million) | 137,000 | — | −37.6% |
| FY3/2027 guidance — net profit (¥ million) | 96,000 | — | −43.2% |
| FY3/2027 guidance — EPS (¥) | 209.26 | — | — |
| Annual dividend per share (¥) | 60.00 | 65.00 | −7.7% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.