ANA Financial Results for Fiscal Year 2010

TOKYO April 28, 2011 – ANA Group today reports consolidated financial results for the fiscal year ended March, 2011. Traffic growth and the expansion of services from Haneda airport in Tokyo contributed to an increase in both revenues and a return to profits during the year.

Operating revenues at $16 billion (1,357.6 billion yen) were up by 10.5% on the previous year while operating income recovered to $815 million (67.8 billion yen) compared with a loss of $652 million (54.2 billion yen). Recurring profit was $445 million (37.0 billion yen) compared with a loss of $1,038 million (86.3 billion yen), and net income for the period was $280 million (23.3 billion yen) compared with a loss of $ 689 million (57.3 billion yen). The dividend per share will be 2 cent (2 yen).

Shinichiro Ito, President & CEO of ANA, said: “2010 was a year of business growth and improved operational performance by enhancing competitiveness and improving cost structure. We expanded our international business during the fiscal year with the addition of new services and increased capacity. At the same time we maintained a tight control on costs in line with the plan set out in ANA’s FY2010-11 Group Corporate Strategy. As a result, our air transport business achieved an increase in revenue and improved profitability compared to the previous year when ANA’s performance was affected by the global recession.”

“Looking forward, however, future prospects for the Japanese economy are unpredictable given substantially higher oil prices, the uncertain outlook for global business, fluctuations in exchange rates and the impact of the March 11 Earthquake. Although our Sendai operation was suspended after the earthquake, ANA played an important role in helping support recovery efforts by operating relief flights to Fukushima and Yamagata, and providing transport of relief supplies and relief workers.”

“To help with the reconstruction of those areas affected by the earthquake and support the recovery of the Japanese economy, ANA intends to maintain reliable operations in its role as a key provider of public transportation, domestically and internationally.”

Domestic Passenger Services

Both business and leisure traffic showed firm growth during the year, although the Earthquake affected traffic in March. Total passenger numbers for the 12 months exceeded those of last year by 1.7%.

ANA resumed the Haneda-Tokushima route in October, introduced seasonal flights and increased capacity by using wider-body aircraft on routes where demand was greater than expected. The Group also enhanced services and stimulated demand by opening a new lounge in the expanded Haneda Domestic Terminal and introducing the ANA Card Family Mileage program.

This resulted in 3.4% growth in passenger revenues on domestic routes over the previous year to $ 7,848 million (652.6 billion yen).

International Passenger Services

In addition to a marked recovery in business demand across all destinations, ANA introduced new routes from Haneda to Los Angeles, Honolulu, Bangkok, Singapore and Taipei (Songshan) following the opening of the new International Terminal at the airport in October, 2010. Additional frequencies on the Haneda-Seoul (Gimpo) route also enabled us to acquire further demand and win more transfer business from passengers connecting from local Japanese cities via Haneda. ANA also introduced a new Narita-Munich service in July, and a Narita-Manila service in February, and resumed the Narita-Jakarta route in January.

Passengers can now take advantage of the new 777-300ER “Inspiration of Japan” product on ANA’s Narita-New York, Narita-Frankfurt, and Narita-London routes. To attract more visitors to Japan, we also introduced an online booking function on our websites in Europe, China, and Asia allowing customers to purchase airline tickets in their local currencies.

Together, these route expansions and customer initiatives resulted in passenger revenue on international routes growing by $800 million (66.5 billion yen) compared to the previous year; an increase of 31.1%.

Cargo Services

International cargo revenues benefited from high shipments of both liquid crystal and semiconductor components on routes within the Asian region and automotive components on routes to North America and Europe from Japan. The Okinawa Hub network also contributed to increased intra Asia demand.

On domestic routes, cargo connections to international routes grew contributing to an increase in the base level of freight carried, but freight tonnage fell below that of the previous year as a result of the smaller aircraft used.

Consequently, international cargo revenues increased by 54.4% compared to the previous year; a rise of $364 million (30.3 billion yen), while revenues on domestic cargo showed a 1.8% year-on-year increase.

Outlook for FY2011 (April 1, 2011 – March 31, 2012)

Although economic growth in Asia continues to help the company’s performance, the sharp increase in oil prices, the uncertain outlook for global economy, fluctuations in exchange rates and the impact of the Earthquake make demand forecast and predictions difficult. We will announce our forecast for the fiscal year ending March, 2012 and our dividend policy when we have more clarity about the outlook for the business.

Following the decline in traffic levels after the earthquake, ANA is introducing a series of measures to adjust its operations and protect the business, expecting the cost reductions of $361 million (30 billion yen) although we are not at the stage of estimating the total impact on future demand by the earthquake. We intend to use smaller aircraft and decrease frequencies on certain routes while introducing promotional fares to stimulate demand on other routes.

At the same time, we are committed to executing the core elements of the FY2011-12 ANA Group Corporate Strategy in line with ANA’s vision of becoming Asia’s leading airline group.