All Nippon Airways expects stronger 2014 performance due to efficiency and more international flying

All Nippon Airways' FY2013 profit was always going to be disappointing compared to rival Japan Airlines, which gained efficiencies (unfairly, in ANA's view) during its bankruptcy restructuring. This held true with ANA delivering half the operating margin of JAL. But aside from this comparison and looking at ANA on its own, Japan's largest carrier by revenue and capacity is managing well. Costs excluding fuel rose in line with capacity growth, although not evenly, giving cause for some worry.

ANA is more bullish than JAL on the future, planning higher growth, to be realised with its recent daytime Tokyo Haneda slots and aircraft orders. ANA expects an improvement in FY2014 even though international expansion during the year will dent load factor, unit revenue and yield. There will be room in the future for optimisation, which ANA plans for its domestic network in 2014 as it carries more passengers on lower capacity, boosting load factor.