ANA’s New Shareholder Benefits Draw a Flurry of “Terrible” Comments… The Backstory Behind Why Even Shareholders Are Being Neglected, as the Program Applies Only to Lowest Fares and LCCs

The Inside Story Behind ANA’s New Shareholder Benefits That Are Causing a Stir  

Major airline ANA has recently been facing simmering dissatisfaction among passengers due to changes to its Super Flyers Card (SFC) program and the introduction of a new fare structure. Furthermore, the new shareholder benefits program launched in June has drawn somewhat harsh criticism, with comments such as “it feels a bit meager” and “are they even disregarding their shareholders?”

Why is ANA—a legacy carrier that represents Japan and is highly regarded worldwide—successively scaling back shareholder returns and status perks?Building on the SFC controversy, we examine the reality behind the changes to shareholder benefits—as well as the current state of the airline industry’s shareholder landscape and the realities behind its strict customer segmentation—drawing on insights from experts well-versed in corporate share matters.  

Are Premium Customers Excluded? The Mystery of the Low-Cost Fares and LCC-Only Restrictions  

Last month, ANA announced the details of its shareholder benefits for the first half of fiscal year ’26 (June 1–November 30, ’26). The main details are as follows:

• ・Domestic flights: “Shareholder Discount”—50% off the base fare* (One one-way segment per shareholder discount code)
• ・5% discount on domestic Economy Class “Simple” fares (the lowest fare category where advance seat selection is not available until 24 hours before departure)
• ・4,000 yen discount on Peach international flights at the time of boarding* (For flights departing from Japan; available for a limited time)
• ・Discount equivalent to 10% on domestic and international tours (previously 2–5%)

Of these, the bottom three are new services introduced this time. Other benefits include special tours for shareholders, mail-order discounts, and benefits from IHG and ANA Hotels Group Japan (20% off accommodations, 10% off food and beverages).

What has drawn particular attention is the handling of the domestic “Simple” fare, introduced on May 19, ’26.Even Diamond members cannot pre-select seats for this fare, yet shareholders receive only a 5% discount—and other fares are excluded from this offer. Furthermore, the Peach discount is limited to international flights departing from Japan, while ANA’s own international flights—the very ones that matter most—are excluded, leading to complaints that the program is “rather stingy.”

It is still fresh in our memory that the recent SFC revisions set the condition for lounge access as “annual spending of 3 million yen or more via ANA Card and ANA Pay.”These latest benefits also exclude fares used by business travelers and passengers in premium classes such as domestic first class, as well as ANA international flights. Consequently, this could be interpreted as neglecting so-called “premium customers” who regularly spend significant amounts of money with ANA.

JAL is carving out its own identity through steady shareholder returns  

Meanwhile, JAL’s main shareholder benefits for the first half of fiscal year ’26 (June 1, ’26 – November 30, ’26) are as follows:

• ・Domestic “Shareholder Discount”: 50% off the base fare *One one-way segment per shareholder discount code
• ・Discounts on travel products (3%–8% for international trips, 3% for domestic trips)

In addition, shareholders can apply for exclusive events and receive benefits at Hotel Nikko and JAL City (15% discount on accommodations).There were no major changes to JAL’s shareholder benefits compared to previous years, effectively maintaining the status quo. Given the current challenging business environment—including high fuel costs—it appears that by avoiding unnecessary changes, JAL managed to avoid the online backlash that ANA experienced.

Furthermore, JAL has introduced new shareholder return measures in recent years. In addition to the standard points awarded based on the number of shares held, shareholders who hold 500 or more shares and exercise their voting rights(i.e., expressing approval or disapproval of company proposals at the General Meeting of Shareholders; the company aims to secure the support of as many shareholders as possible to stabilize management) to shareholders holding 500 or more shares . It has introduced a system that awards additional bonus points based on the number of times voting rights are exercised.

Furthermore, starting with the record date at the end of September, the company launched a new benefit that grants up to 3,000 “eJAL Points”—which can be used for purchasing airline tickets and other purposes—once a year to shareholders who hold 100 or more shares and meet certain conditions.

It should be noted that “half-price domestic fares” are a standard feature of shareholder benefits at Japanese airlines, and this benefit remains in place at both companies. However, the reality is that the value of these shareholder benefit fares has diminished compared to the past, due to factors such as “limited availability per flight” and “sale fares being cheaper.”Some people sell their vouchers to ticket resellers, but it is not uncommon for the purchase price to range from tens to hundreds of yen per voucher depending on the season—essentially making them “worthless scraps of paper.”

An Expert’s Take! The Difference in Investment Value Between the Two Companies  

Based on the details of the new shareholder benefits announced by ANA and JAL, what is the value of each company’s stock? We asked Kenji Matsuoka, a manager-analyst with a background in securities.

“Market capitalization is an easy-to-understand indicator of corporate value. As of June 5, ANA’s market cap was approximately 1.38 trillion yen, while JAL’s was approximately 1.17 trillion yen. Although ANA’s is about 20 percent higher, the difference isn’t that significant. I think it’s safe to say that the corporate value of both companies is roughly the same,” said Mr. Matsuoka (same below).

Looking closely at the financial figures, ANA outperforms JAL in terms of revenue, operating profit, and net income. On the other hand, JAL has a higher operating profit margin. This trend has essentially continued from more than 10 years ago to the present.

“One could view ANA as a company focused on sales volume and JAL as one focused on operational efficiency, but that’s only a slight distinction. When viewed as investment targets, it’s difficult to identify any clear differences.In fact, key stock market metrics such as the P/E ratio (price-to-earnings ratio) and P/B ratio (price-to-book ratio) are at nearly the same levels. This indicates that the stock market views both companies as investment targets with no significant difference in relative merit.”

The Achilles’ heel of airline stocks is the “decline in overseas travel”  

Current business performance is strong. Both companies posted record profits for the fiscal year ending March ’26. However, for the fiscal year ending March ’27, ANA has forecast a decline in profits due to soaring crude oil prices, while JAL has maintained its previous forecast. Although their earnings forecasts diverged in this way, there was virtually no impact on their stock prices.

“In recent years, growth has been driven by increasing inbound demand (foreign visitors to Japan), and we can expect this trend to remain solid going forward. However, we cannot expect much growth beyond that. This is because there are concerns that outbound demand—that is, Japanese travel abroad—may not grow.”

According to Mr. Matsuoka, “Ultimately, airlines’ fortunes depend on Japanese outbound travel.” International flights generate significantly higher revenue per seat and profit margins, making them the main source of revenue for airlines. In Japan’s case in particular, while domestic flights carry a large number of passengers, intense price competition with modes of transport like the Shinkansen keeps profit margins low.

“Outbound travel from Japan remains well below pre-COVID levels. In the medium to long term, overseas travel is likely to remain sluggish as long as the yen remains weak, and the population of relatively affluent seniors is also declining. I see no factors that would drive outbound demand higher. Isn’t the fact that the PBR is around 1x, as mentioned earlier, evidence that the market senses this lack of growth potential?”

A PBR of 1 means the company’s assets are equal to its stock price. In other words, the company’s earnings power and growth potential are not reflected in the stock price at all. For an airline with tangible assets, this is said to be extremely low, even when compared to U.S. airlines, for example.

“If the stock becomes more undervalued, we’ll likely see some buying interest, but fundamentally, I expect the rate of increase to remain in line with the market average.”  

Why I’m choosing to hold onto my airline stocks right now  

Those who already own airline stocks may be wondering whether to hold onto them or sell. ANA has decided to pay an interim dividend starting with the fiscal year ending March ’27, but the stock price has shown virtually no reaction to this announcement.

“Ultimately, if the total annual dividend doesn’t increase, simply splitting it into two payments is meaningless. We haven’t heard any announcements about raising the ‘dividend payout ratio’—an indicator showing what percentage of a company’s net income for the period is returned to shareholders as dividends.Moreover, the company has already announced that profits are expected to decline in the next fiscal year. Under these circumstances, not only are shareholder return measures weak, but the message to shareholders is unclear as well; it’s no wonder that the ‘deterioration’ in service stands out so negatively.”

On the other hand, while JAL’s stock price is lower than ANA’s, some say it’s “still not so bad” because its dividend yield is higher.

“People who buy ANA or JAL stock individually might do so for reasons like getting a discount when visiting their parents’ home, or because they love traveling, airplanes, or airports. Then there are those who make sure to use the perks, such as shareholder discount fares, every year.”

Cutting Back on Premium Customers Too? The Harsh Reality of the Airline Industry  

To some extent, airlines have traditionally been supported by core fans who fly to earn miles or who fly extensively each year (mileage runs) to achieve elite status.

However, a look at the “Mid-Term Management Strategies” and “Mid-Term Management Plans” announced by ANA and JAL earlier this year reveals a different picture.For example, ANA Holdings’ announcements are said to be dominated by slogans such as, “By ‘expanding connections between people and goods’ and ‘expanding our fan base,’ we will create economic and social value and realize our group management vision of ‘A World Filled with Excitement.’”

“Even when looking at the growth investments outlined in the Mid-Term Management Plan, they stop at statements like ‘We will maximize value creation through “digital” and “human power.”’While utilizing AI to analyze historically accumulated data may seem appealing, other industries—such as Rakuten and NTT Docomo—possess far more of that data, and by now, such measures can hardly be called novel. The plan lacked concrete details, such as specific figures, and there was nothing that made me want to buy their stock.”

As evident from recent revisions to the SFC program and the latest changes to shareholder benefits, the company is currently in such a dire situation that it has been forced to cut back even on its “strategy to attract core fans who spend money.” Ultimately, the reason airline shareholder benefits are perceived as having been “downgraded” likely boils down to the fact that, compared to other industries, they lack the appeal of future growth potential.

Coincidentally, ANA’s annual general meeting of shareholders is scheduled for the end of June. As the ripple effects of these successive “downgrades” continue to spread, it will be very interesting to see what kind of harsh reactions shareholders will have toward the company’s stance.

▼Kenji Matsuoka: Money writer and financial planner. After working as a market analyst at a securities firm, he became independent in 1996. He writes articles on finance and asset management, primarily for business and economic magazines. His books include *The First-Year Guide to Robo-Advisor Investing* and *Easy to Understand with Plenty of Illustrations! The Book That Guarantees You’ll Save Money with Cashless Payments*.