ANA Margins See Cost Pressure, but Travel Demand Remains Firm

ANA Holdings’ full-service passenger airline operations should continue to dominate and underpin the group’s revenue and profit. Management is focused on expanding its international passenger services as it reestablishes its international trunk routes post-coronavirus. It expects Japan’s inbound tourism to continue to outpace outbound growth and anticipates that it will also need to provide services to inbound tourists to secondary locations in Japan beyond the current key portals of Tokyo and Osaka. To capture demand growth from inbound travel to Japan from Southeast Asia, ANA is launching the Air Japan brand. Air Japan is expected to compete with Singapore Airlines’ Scoot and Japan Airlines’ Zipair.