Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q1 FY2024 Earnings Presentation
24 slides from Japan Airlines's earnings presentation, Jul 31, 2024
Slide 1: Financial Results 1st Quarter Mar/2025 (FY2024)
JAPAN AIRLINES Co.,Ltd. Financial Results 1st Quarter Mar/2025（FY2024） JAL Athlete Employees, Japan National Team for the Paris 2024 Olympic Games Left ：Haruka Kitaguchi：Javelin throw, Track and field Middle：Koki Kano：Épée, Fencing July 31, 2024 Right ：Rachid Muratake：110 metres hurdles,Track and fiel
Slide 2: Agenda
SKYTRAX SKYTRAX APEX 2024 World Airline Star APEX World's Best Rating Best Wi-Fi in Eastern WORLD CLASS Premium Economy Class 5-Star Asia 2024APEX" 1. PERFORMANCE OVERVIEW FOR FY24Q1 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q1 3. REFERENCES Health and Productivity Management Brand ※ THE INCLUSION OF
Slide 3: Performance Overview for FY2024Q1
Performance Overview for FY2024Q1 ✔ Strong Japan-bound demand led Int'l pax revenue increase. Domestic pax number did not meet expectations, resulting in slight increase of revenue. ✔ Growth in non-aviation business, progress in business portfolio reform and cost reduction efforts led EBIT to exceed
Slide 4: FY2024Q1 Performance by business segment
FY2024Q1 Performance by business segment ✔ FSC: Int'l pax led revenue increase year on year ✔ LCC: ZIPAIR continues to perform well and SPRING JAPAN will be profitable from Q2 ✔ Mileage/Finance and Commerce: Revenue increased as the mileage points increased Others: Growing ground handling led EBIT gr
Slide 5: Recent Initiatives
Recent Initiatives Full Service 貨物・郵便 Carrier Cargo and Mail Expansion of the Cargo business to resolve social Increase of direct flights on the Haneda-New York route issues ■Codeshared with American Airlines®, increasing direct ■International Cargo: Freighter services (767F) on six flights on the Ha
Slide 6: Details of financial results for FY24Q1
1. PERFORMANCE OVERVIEW FOR FY24Q1 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q1 3. REFERENCES ©Japan Airlines, ALL rights reserved. 6
Slide 7: Details of financial results for FY2024Q1: Consolidated Financial Results
Details of financial results for FY2024Q1 Consolidated Financial Results (JPY Bn) FY23Q1 FY24Q1 Diff. y/y Revenue 381.4 424.0 +42.6 +11.2% Full Service Carrier 308.1 333.7 +25.5 +8.3% International PAX 147.5 165.9 +18.4 +12.5% Domestic PAX 122.0 124.7 +2.7 +2.2% Cargo and Mail 34.3 38.8 +4.4 +13.0% Ot
Slide 8: Changes in EBIT (Revenues/Expenses)
Details of financial results for FY2024Q1 Changes in EBIT (Revenues／Expenses) + stands for profit increase (revenue increase, cost decrease) RPK y/y ： +7.3% ▼ stands for profit decrease (revenue decrease, cost increase) ASK y/y ： +5.5% ▼9.2 Bn (JPY Bn) Mileage/Finance and Commerce, Other (Ground Handli
Slide 9: Changes in EBIT (Market and other impact)
Details of financial results for FY2024Q1 Changes in EBIT (Market and other impact) + stands for profit increase (revenue increase, cost decrease) ▼stands for profit decrease (revenue decrease, cost increase) Impact from ▼9.2Bn (Excl. Market Impact) (JPY Bn) Currency Market ▼9.2 Bn Revenue +11.1 Bn Cos
Slide 10: International Passenger Operations (Full Service Carrier)
Details of financial results for FY2024Q1 International Passenger Operations (Full Service Carrier) ✔ Int'l pax revenue increased by capturing strong inbound demand and high yield achieved. ✔ JAL will capture recovering business demand from Japan and maintain the high yield level. International Passe
Slide 11: Domestic Passenger Operations (Full Service Carrier)
Details of financial results for FY2024Q1 Domestic Passenger Operations (Full Service Carrier) ✔ Amid efforts to improve yield, the number of passenger remained sluggish, especially for group passengers. ✔ Works to stimulate demand for less-congested flights through various measures and continues to im
Slide 12: Cargo
Details of financial results for FY2024Q1 Cargo ✔ International Cargo: Boeing 767 freighter services led cargo weight increase. High valued cargo mainly from Asia also led revenue growth. ✔ Domestic Cargo: Started A321 freighter services with Yamato HD from April 2024, contributing to significant reve
Slide 13: LCC
Details of financial results for FY2024Q1 LCC ✔ ZIPAIR shows good performance. From August 2024, SPRING JAPAN will launch Shanghai and Beijing routes as codesharing with JAL, aiming to be profitable throughout a year Q1 (Apr. to Jun.) ZIPAIR FY23Q1 FY24Q1 y/y Passenger Revenue (JPY Bn) 11.5 17.2 +49.2
Slide 14: Mileage/Finance and Commerce, Other (Travel, Ground Handling)
Details of financial results for FY2024Q1 Mileage/Finance and Commerce, Other(Travel,Ground Handling) ✔ Mileage/Finance and Commerce: Posted steady profit by more mileage points issued through non-aviation business. ✔ Others: Increased ground handling contracts with higher unit price, resulting in lar
Slide 15: Expenses
Details of financial results for FY2024Q1 Expenses Major Operating Expense Items Q1 (Apr. to Jun.) （JPY Bn） Vs. FY23Q1 FY23Q1 FY24Q1 Diff. y/y Fuel 79.4 94.5 +15.1 +19.0% Landing and navigation fees 17.3 20.6 +3.3 +19.4% Maintenance 29.2 36.2 +6.9 +23.9% Sales commissions 6.2 7.5 +1.3 +21.9% (Air Tran
Slide 16: Fuel Costs
Details of financial results for FY2024Q1 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Jun./2024) Hedging （JPY Bn） FX and others +11.3 ▼6.0 Volume Market 94.5 +5.7 ＋4.0 79.4 ＋15.1Bn (+19.0%) FY24 FY25 FY26 FY23Q1 FY24Q1 Fuel Hedging FX Hedging Foreign currency ❏ Hedging conducted for Fu
Slide 17: Balance Sheet and Cash Flow
Details of financial results for FY2024Q1 Balance Sheet and Cash Flow ✔ Equity ratio is 38.9% and Net D/E ratio is x0.0 both in terms of credit rating BS evaluation basis, kept at a healthy level ✔ Maintained a positive free cash flow despite increased investment. Conducted CF debt financing as planned
Slide 18: References
1. PERFORMANCE OVERVIEW FOR FY24Q1 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q1 3. REFERENCES ©Japan Airlines, ALL rights reserved. 18
Slide 19: Operation Performance by Geographic Segment (Full Service Carrier)
[Reference] Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried Q1 (Apr. to Jun.) Q1 (Apr. to Jun.) ('000) (%) FY24 FY24Q1 Vs. FY23Q1 Vs. FY23Q1 Component Ratio America 413 +5.2% America 40% +23.1% Europe 176 +30.3% Europe 18% +21.8% Asia/O
Slide 20: Fleet Information
[Reference] Fleet Information End of FY23 (March 31, 2024) End of FY24Q1 (June 30, 2024) Diff. Owned Leased Total Owned Leased Total Airbus A350-1000 3 0 3 3 0 3 0 Airbus A350-900 11 4 15 11 4 15 0 Large Boeing 777-300ER 13 0 13 13 0 13 0 Large-sized Total 27 4 31 27 4 31 0 Boeing 787-9 19 3 22 19 3
Slide 21: Details of FY2024 Full-Year Performance Forecast
[Reference] Details of FY2024 Full-Year Performance Forecast FY24 Q1 FY24 Impact on profit after FY24Q2 by Fuel and FX rate (JPY Bn) y/y vs. (Incl. hedging and Fuel surcharges) Result Forecast(1) FY23 Dubai Revenue 424.0 +11.2% 1,930.0 Fuel 70USD 80USD 90USD 100USD Crude Full Service Carrier 334.6 +8
Slide 22: FY2024 Earnings Forecast (Air transportation Segment)
[Reference] FY2024 Earnings Forecast (Air transportation Segment) FY24 Vs. CY19 (%) Vs. FY23 (%) International Passenger CY19 (4) FY23 Forecast Full-year 1st Half 2nd Half Full-year 1st Half 2nd Half Passenger Revenue (JPY Bn) 531.2 622.3 710.0 +33.6% +27.1% +40.5% +14.1% +10.4% +17.9% Passengers (’
Slide 23: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 23
Slide 24: Disclaimer
Disclaimer This content contains descriptions of the future expectations, outlooks, objectives and plans etc. of Japan Airlines Co., Ltd. (hereafter "the company") and related Group companies (hereafter "the Group"). These are based on information available at the time when these materials were crea