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ANA's April-June net profit falls on rising costs, tax

7 Comments
By Kazuhiro Nogi

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So, they are using money to create more opportunities to make money by increasing their landing and take off slots, and this is considered a loss? Also what are these so-called "tax expenses". I'm pretty sure the Abe gov't hasn't levied a special tax just on ANA and not told anybody else. This is a company playing with the numbers so as to keep ticket prices high and claim difficulty, when-in-fact, they are carrying more passengers and making more money.

2 ( +3 / -1 )

Spot on MarkX.

Very dubious report.

1 ( +2 / -1 )

@MarkX - Its a public company, so yes as far as the shareholders are concerned then these costs are losses/expenses. An airline ONLY makes money with planes in the the sky. Anything else is a loss. Staff on the ground, gate time, maintenance etc. They are just about to launch a new hard product for Premium Routes (expensive). Paying for seven new International gates at Haneda (expensive). Cargo loads are down, that may seem insignificant to you but its a huge part of their income. There are instances when Cargo volumes have kept smaller carriers alive! ANA are not propped up by the Government , are a full service carrier and have every right to keep fares as high as they wish. Their loads certainly reflect the excellent service they offer. There are plenty of other choices out there now so nobody is forcing you to fly with them.

0 ( +0 / -0 )

Cargo loads are down, that may seem insignificant to you but its a huge part of their income. There are instances when Cargo volumes have kept smaller carriers alive!

On this point I agree with you. I'm sure that the amount or lack of cargo being flown around is hurting their profits. But don't tell me that regular expenses like building new gates, and premium routes preparation can be considered a loss! It is called the cost of doing business. Are you telling me that when a supermarket decides to renovate, they tell everyone, we are losing so much money because of these renovations we have to increase the cost of milk by 20%. BS. They are just using this as an excuse. Don't get me wrong, I love ANA and fly them all the time, but it seems that they are playing fast and loose with the numbers. Also I still want to know about the tax expenses they have complained about.

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But don't tell me that regular expenses like building new gates, and premium routes preparation can be considered a loss! It is called the cost of doing business. Are you telling me that when a supermarket decides to renovate, they tell everyone, we are losing so much money because of these renovations we have to increase the cost of milk by 20%. BS. They are just using this as an excuse.

Fuel and wages are the cost of doing business. Construction and additions are losses. Yes, it will (hopefully) bring in increased profits in the future, but today it is only costing the company money with no return. That's a loss. The company I work for is renovating a new building to relocate to which is costing millions. This is reflected in our earnings and right now it is definitely a loss that has to be made up somewhere.

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Fuel and wages are the cost of doing business. Construction and additions are losses. 

If it's going to bring in more money in the future then it's an investment not a loss.

-1 ( +0 / -1 )

If it's going to bring in more money in the future then it's an investment not a loss.

Yes, it's an investment. But spending more money that isn't bringing in additional profit now results in lower net income. That's still a loss.

0 ( +0 / -0 )

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