ANA Group achieved record results: strong demand for travel and cargo traffic pushed revenue higher
The Japanese aviation group ANA Holdings closed the fiscal year ended March 31, 2026, with record financial results, confirming that the recovery of air traffic in Asia is no longer based only on the return of passengers after the pandemic, but also on stronger international positioning, the growth of tourism to Japan, and the expansion of the cargo business. According to the published financial data, ANA Group's operating revenues reached 2,539.2 billion yen, which is 12.3 percent more than a year earlier. In euro terms, that is approximately 13.6 billion euros, depending on the exchange rate applied, whereby the company confirmed one of the most successful years in its history.
Operating profit amounted to 217.4 billion yen, with growth of 10.6 percent year-on-year, while net profit attributable to owners of the parent company increased to 169.0 billion yen. At the same time, ANA Holdings increased the annual dividend per common share to 65 yen, above the previously forecast 60 yen. Such a decision signals that management believes the record results are solid enough for part of the financial effect to be returned to shareholders, although the company forecasts slower profit growth for the next fiscal year due to higher costs, geopolitical risks, and fuel price movements.
Revenue growth supported by international passengers
The central driver of the results was the continuation of strong demand for international travel, especially for flights to Japan. In its financial explanations, ANA states that passenger demand continued to grow despite geopolitical uncertainties, including the situation in the Middle East and in Ukraine. In such an environment, revenues grew primarily in the aviation business, and international passenger traffic remained one of the most important levers of recovery and expansion.
That trend fits into the broader picture of Japanese tourism. During 2025, Japan recorded a record level of foreign visitor arrivals, and official tourism statistics show that the recovery of inbound tourism has turned into a new phase of growth. For airlines, this means greater demand on routes to Tokyo, Osaka, and other Japanese destinations, but also pressure to allocate capacity more carefully than before. ANA Group therefore speaks not only about the return of traffic, but also about the long-term expansion of the international network and strengthening revenue from passengers who see Japan as an important tourist and business destination.
In previous quarterly releases, the company had already indicated that revenues on international routes were growing thanks to inbound tourism to Japan and stronger demand for travel outside Japan. European routes and network expansion through routes from Haneda to Milan, Stockholm, and Istanbul, launched in the second half of the previous fiscal year, were particularly highlighted. In the third quarter, the company also mentioned frequency increases on routes to Hong Kong, Perth, and Mumbai, which shows that growth does not rely on just one market, but on a combination of Asian, European, and Pacific passenger flows.
Nippon Cargo Airlines changed the weight of the cargo business
Another important element of the record year was the consolidation of Nippon Cargo Airlines, the cargo carrier that became part of ANA Group. In earlier releases, ANA stated that the effects of NCA would be included from 2025 and that the integration was expected to bring synergies in the cargo network, especially on routes connecting Asia, North America, and Europe. This gave ANA Group a stronger position in the segment of wide-body cargo aircraft, and not only in carrying cargo in the belly hold of passenger aircraft.
Air cargo traffic has gone through major fluctuations in recent years. After an exceptionally strong period during disruptions in global supply chains, demand on some routes normalized, while e-commerce, automotive parts, and high-value goods remained important but variable sources of revenue. In quarterly reports, ANA warned that some flows were affected by U.S. tariff policies and weaker demand from China to North America, but at the same time it recorded strengthening demand from Asia to Europe and North America.
This is precisely why the inclusion of NCA has strategic importance. The company can now better combine passenger and cargo capacity, align the cargo-flight network with passenger hubs, and use the growing role of air cargo in global trade. ANA Group's medium-term strategy for the 2026–2028 period envisages international cargo traffic becoming one of the two key drivers of growth, alongside international passenger traffic. The company's documents state the goal of increasing the scale of the international cargo business by 1.3 times and creating significant synergy effects through cooperation between ANA and NCA.
The domestic market is growing, but profitability remains a challenge
Although international flights and cargo traffic marked the record year the most, the domestic Japanese market remains an important part of ANA Group's business. During 2025, the company reported growth in the number of passengers and revenue on domestic routes, with promotional fares on flights with lower demand and adjustments to fare levels. At the same time, it emphasized that domestic air traffic still has structural profitability challenges, including a slower recovery of business travel compared with the pre-pandemic period, rising costs, and the need for more efficient use of capacity.
For this reason, in the domestic segment ANA is not announcing only an increase in the number of flights, but the optimization of supply and demand by route. In its medium-term strategy, the company mentions the introduction of new aircraft, including the Embraer E190-E2 after fiscal 2028, as one of the ways to improve the profitability of domestic routes. Smaller and more efficient aircraft can help on routes where large capacity is not always justified, but air connectivity remains important for regional mobility and economic activity.
The domestic market in Japan also has broader social dimensions. Population aging, changes in business travel patterns, and the need for better regional connectivity influence the decisions of airlines and regulators. In earlier releases, ANA stated that it was monitoring discussions by Japan's Ministry of Land, Infrastructure, Transport and Tourism on the future of domestic aviation. This shows that part of the challenges cannot be solved solely by the company's commercial decisions, but also by aligning public policies, infrastructure, and market conditions.
Dividend increased, but the forecast for 2027 is more cautious
The increase of the dividend to 65 yen per common share is important because it comes after a year in which revenues, operating profit, and net profit reached record levels. For investors, this is a sign that the company's balance sheet has stabilized after the extremely difficult pandemic period, when airlines around the world were forced to preserve liquidity and reduce risk. ANA today again speaks about growth, investments, and returning value to shareholders, but it does not neglect the cost side of the business.
For the fiscal year ending March 31, 2027, the company forecasts operating revenues of 2,770.0 billion yen, which would mean continued revenue growth. However, expected net profit amounts to 96.0 billion yen, significantly less than the record 169.0 billion yen from the just-ended year. In its explanation of future outlooks, ANA points out that the Japanese economy is showing signs of gradual recovery, but also that U.S. trade policies, the situation in the Middle East, and the supply and prices of fuel, which are key for air operations, must be carefully monitored.
Such a forecast does not necessarily mean weakening demand, but warns that traffic growth in aviation does not automatically lead to equally strong profit growth. Fuel, maintenance, labor, exchange-rate differences, and airport-related fees strongly affect margins. If fuel prices rise or the yen weakens in a way that increases costs denominated in foreign currencies, part of the benefit from a larger number of passengers and cargo can be neutralized. ANA therefore enters the next year with an ambition to expand, but also with caution that reflects the volatility of the global aviation market.
Major investments and reliance on Narita
The record results come at a time when ANA Group is already preparing a new phase of growth. In its medium-term strategy for the 2026–2028 period, the company stated that it sees the expansion of Narita Airport in 2029 as the largest business opportunity in the coming period. Narita, together with Haneda, should strengthen the competitiveness of Tokyo's air system compared with other major Asian and global hubs. For ANA, this means more space for international routes, better connectivity with long-haul markets, and the possibility of stronger integration of passenger and cargo traffic.
The company plans record investments of 2.7 trillion yen over five years, with an emphasis on digital transformation, human resources, and aircraft. Around half of the total investment amount is directed toward international passenger and cargo business, while a significant portion is planned for digital projects. In practice, this includes the modernization of operations, more productive network planning, more efficient management of traffic disruptions, and better customer service.
In February 2025, ANA Holdings announced a decision to order 77 aircraft, including aircraft intended for international growth and optimization of the domestic network. Among them are wide-body aircraft for long-haul routes and narrow-body and regional models for more efficient adjustment to demand. President and CEO Koji Shibata said at the time that the order should be a catalyst for improving the profitability of domestic flights and expanding the international business, which the company sees as an area of future growth.
The results reflect a change in global aviation
ANA Group's financial result should also be viewed in a broader context. Airlines after the pandemic no longer operate in the same environment as before 2020. Demand for travel has recovered strongly, but labor, maintenance, financing, and fuel costs are higher, while geopolitical risks more directly affect routes, insurance, prices, and operational planning. In such circumstances, the most successful companies are not necessarily those that only increase capacity, but those that can direct it precisely toward markets with the best yields.
In that sense, ANA Group is trying to build a model in which international passengers, the low-cost carrier Peach, AirJapan, and the cargo segment have different but connected roles. Peach enables the capture of more price-sensitive demand and the leisure segment, AirJapan targets international Asian routes, while the main ANA brand retains the position of a full-service carrier on domestic and international routes. The cargo segment, strengthened by NCA, reduces dependence on passenger revenues and gives the company an additional source of growth in periods when global trade seeks fast and reliable air capacity.
The record fiscal year ended March 31, 2026, therefore represents not only a good financial result, but also confirmation that ANA Group has managed to position itself for the next phase of competition in Asian and global aviation. The key challenge now will be to turn strong demand into sustainable profitability, especially if fuel costs and geopolitical uncertainties remain elevated. The company enters 2027 with greater revenue ambitions, but also with a clear message that financial success will depend on cost discipline, high-quality network management, and the ability to turn the growth of tourism and cargo into stable long-term value.
Sources:- ANA Holdings – financial indicators for FY2025 and forecast for FY2026 (link)- ANA Holdings – financial results for the six months ended September 30, 2025, and revised forecast (link)- ANA Holdings – financial results for the nine months ended December 31, 2025 (link)- ANA Holdings – medium-term corporate strategy for FY2026–2028 (link)- ANA Holdings – decision to order 77 aircraft and fleet expansion plan (link)- Japan National Tourism Organization – official database of statistics on foreign visitor arrivals in Japan (link)
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