All Nippon Airways (ANA) will reduce its domestic and international network by thirty flights per day from January until late March, as Pratt & Whitney Geared Turbofans on 33 Airbus A320neo family need inspections and repairs. The reduction represents 3.6 percent of all of ANA’s daily flights and will have an impact on revenues of some ¥8.0 billion this financial year. The Japanese carrier has 22 A321neo’s and eleven A320neo’s with GTFs that are subject to the inspections and repairs of the High-Pressure Turbine and High-Pressure Compressor disks, due to powder metal contamination. The aircraft were delivered between December 2016 and December 2021 with engines that have suspected parts that were produced between Q4 2015 and Q3 2015. Until engines receive new parts, existing parts will be subject to shorter cycles between inspections. ANA expects to ground 25 aircraft between January and March and 23 in March. The flight reduction only covers the first three months of 2024. ANA will provide an update in January for the period after March. P&W expects engines to be unavailable for 250-300 days, although the OEM says it is doing everything it can to minimize the effects. The company said last week that repairs have been completed in 35 days on a number of pilot engines. The grounding will have a 2.5 percent impact on the domestic schedule and a 1.5 percent on international services, the latter mainly caused by delaying the expansion of routes to China. To minimize the impact on the schedule, ANA is mainly reducing flights on routes that have multiple daily services or alternatives on the same day. ANA is wet-leasing capacity from two Japanese airlines: Star Flyer, which operates ten A320ceo’s and one A321neo, and Solaseed Air, which has a fleet of fourteen Boeing 737-800s. Together, the two airlines will operate 134 flights for ANA. Strong demand for leisure ANA reported a ¥93.2 billion net income attributable to shareholders for the first six months of its financial year 2023, which runs from March to September. This compares to ¥19.5 billion in the same period of FY22. ANA Group already produced a net profit in Q1. Operating revenues grew to ¥1.003 billion from ¥790.7 million as ANA carried 28.4 million passengers. Operating expenses were also up to ¥872.9 billion from ¥759.2 billion, largely reflecting higher volumes. The operating profit was ¥129.7 billion versus ¥31.4 billion. ANA carried 20.4 million passengers on the domestic network, an increase of 34.6 percent year on year. Capacity in available seat kilometers was up 15.1 percent to 27.5 million. Demand for leisure was strong and stimulated by special fares and extra flights to popular holiday destinations, but business travel is still behind. Operations were impacted by bad weather, which included a typhoon that struck Japan. On the international network, the number of passengers grew by 109.1 percent to 3.5 million, with capacity up by 76.1 percent to 25.9 million kilometers. Demand especially between North America and China was strong, with leisure demand from Japan increasing as the Japanese wished to travel more. Honolulu is once again a very popular destination. ANA increased the schedule from seven to ten flights per week and is using all three Airbus A380s on the route now. The third with orange livery was activated on October 20, almost three years since she was delivered to the airline. Cargo is suffering from reduced demand and saw revenues drop to ¥85.9 billion from ¥195.3 billion. Tonnes carried was 465, down from 548 in FY22. International network Peach restored Low-cost subsidiary Peach carried 27.1 percent more passengers in HY1 or 4.7 million in total. Capacity was up by 11.3 percent to 6.7 million. Revenues grew 65 percent to ¥67.3 billion. Strong leisure demand during the holiday season from both outgoing and incoming passengers boosted traffic and results. Peach reinstated all international routes out of Tokyo Haneda and Osaka Kansai that had been suspended during the pandemic. Peach is unaffected by the GTF issues as it operates A320neo family aircraft with CFM LEAPs. In its FY23 guidance, ANA is including an impact of ¥8.0 billion from the GTF issues until March 2024 as well as the effects of higher fuel prices, resulting in a ¥40 billion impact on revenues. But as demand further recovers and remains robust, the carrier is guiding a 262.5 percent increase year on year of revenues to ¥1.970 billion. The operating income should be up by 19.9 percent to ¥140 billion, but the net profit is guided 9.4 percent down to ¥80 billion compared to FY22. Beyond 2023, ANA is still targeting to grow the operating income to ¥200 billion in FY25 thanks to sustainable growth while at the same time reducing its carbon footprint. ANA ended September with 273 aircraft, one more than in March. The parent airline took delivery of one Boeing 787-9, while Peach inducted four A320neo’s and phased out four ceo’s.