All Nippon Airways 787. Courtesy, Boeing

All Nippon Airways (ANA) reported net income of ¥22.8 billion ($301 million) for the first half of its fiscal year ended Sept. 30, up 72.1% over a ¥13.2 billion net profit in the six months ended Sept. 30, 2010.

First-half operating revenue heightened 3% year-over-year to ¥704.8 billion while expenses rose 4.4% to ¥654.7 billion, producing an operating profit if ¥50.1 billion, down 6.6%.

"Demand for air travel recovered from the effects of the Great East Japan Earthquake on March 11," ANA stated. "Nevertheless, the short-term outlook remains unclear due to factors such as the weakening global economy, steep rises in crude oil prices, and volatility in exchange rates and equity markets. In light of the prevailing economic conditions, ANA has sought to minimize the impact of the earthquake by promoting various initiatives to stimulate demand and reduce costs."

Fiscal first-half domestic traffic decreased 8.5% year-over-year to 17.05 billion RPKs on flat capacity of 28.41 billion ASKs, producing a load factor of 60%, down 5.6 points. International traffic for the six-month period heightened 10.7% to 12.2 billion RPKs on a 21.5% lift in capacity to 16.92 ASKs, producing a load factor of 72.1%, down 7 points.

"There was a marked decline in international passengers following the earthquake but numbers, led by business demand, began to rebound around the middle of April," the airline said. "By June business traffic had almost recovered to the level prior to the earthquake. Outbound leisure demand has also remained firm since July but a full recovery in inbound demand will require more time."

ANA last week introduced the Boeing 787 into service (ATW Daily News, Oct. 28).