ANA Posts Steep Net Profit Gain on Sale of Hotels

By Kyodo News International, Tokyo

Jul. 31–TOKYO — All Nippon Airways Co. said Tuesday it chalked up a group net profit of 87.38 billion yen in the April-June period, up sharply from the year-before profit of 7.68 billion yen, on an extraordinary profit from the sale of its hotel operations.

Revenue increased 1.3 percent to 349.62 billion yen, a record high for the three-month period, as both domestic and international flight services scored revenue gains, ANA said in a consolidated earnings report for the first quarter of fiscal 2007.

But operating and pretax profits dropped 32.3 percent and 53.0 percent, respectively, to 13.22 billion yen and 6.81 billion yen due to an increase in fuel costs caused by higher crude oil prices, ANA said.

The company booked an extraordinary profit of 133 billion yen from the sale of its 13 domestic hotels to U.S. brokerage group Morgan Stanley.

For the entire fiscal year to next March 31, ANA is keeping its group earnings projections unchanged at 64 billion yen in net profit, 46 billion yen in pretax profit and 1.49 trillion yen in revenue, compared with the respective figures of 32.6 billion yen, 62.5 billion yen and 1.49 trillion yen in the previous year.

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Copyright (c) 2007, Kyodo News International, Tokyo

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