Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — H1 FY2024 Earnings Presentation
24 slides from Japan Airlines's earnings presentation, Nov 1, 2024
Slide 1: Financial Results 1st Half Mar/2025 (FY2024)
JAPAN AIRLINES Co.,Ltd. Financial Results 1st Half Mar/2025（FY2024） The specially painted aircraft "DREAM SHO JET," featuring a design of Shohei Ohtani, take flight starting September 29. November 1, 2024 ©Japan Airlines, ALL rights reserved.
Slide 2: Agenda and notes
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 FY24Q2 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q2 3. REFERENCES Health and Productivity Management Brand ※ THE INCLUSION OF
Slide 3: Performance Overview for FY2024Q2
Performance Overview for FY2024Q2 ✔ Int'l pax revenue increased because of strong inbound demand and the recovery of business demand outbound from Japan ✔ As the business model reform advanced, profit grew y/y driven by the non-aviation business ✔ Forecasts of consolidated financial results and divide
Slide 4: FY2024Q2 Performance by business segment
FY2024Q2 Performance by business segment ✔ FSC:Revenue growth y/y driven by Int'l pax and Cargo ✔ LCC:ZIPAIR continues to perform well, and SPRING JAPAN turned profitable with recovery of China route demand ✔ Mileage/Finance and Commerce: Commerce business led EBIT growth y/y ✔ Other: Despite one-tim
Slide 5: Recent Initiatives
Recent Initiatives Full Service 貨物・郵便 Carrier Cargo and Mail Key Initiatives to Strengthen Competitiveness on Cargo Freighter Business Expansion International Routes ■International Cargo: ■A350-1000 to start service on Europe Routes 767 freighter to be expanded following the Americas Routes from Oct
Slide 6: Details of financial results for FY24Q2
1. PERFORMANCE OVERVIEW FOR FY24Q2 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q2 3. REFERENCES ©Japan Airlines, ALL rights reserved. 6
Slide 7: Consolidated Financial Results
Details of financial results for FY2024Q2 Consolidated Financial Results 1st Half Q2 (Jul. to Sep.) (JPY Bn) Vs. FY23Q2 FY23Q2 FY24Q2 Diff. y/y FY24Q2 Diff. y/y Revenue 820.9 901.8 +80.8 +9.9% 477.7 +38.2 +8.7% Full Service Carrier 665.6 710.1 +44.5 +6.7% 376.4 +18.9 +5.3% International PAX 314.4 340.5
Slide 8: Changes in EBIT (Revenues/Expenses)
Details of financial results for FY2024Q2 Changes in EBIT (Revenues／Expenses) + stands for profit increase (revenue increase, cost decrease) RPK y/y ： +7.4% ▼ stands for profit decrease (revenue decrease, cost increase) ASK y/y ： +5.2% ▼5.5Bn (JPY Bn) Mileage/Finance and Commerce, Other (Ground Handlin
Slide 9: Changes in EBIT (Market and other impact)
Details of financial results for FY2024Q2 Changes in EBIT (Market and other impact) + stands for profit increase (revenue increase, cost decrease) Impact from ▼stands for profit decrease (revenue decrease, cost increase) Currency Market ▼13.2 Bn ▼5.5Bn (JPY Bn) Revenue +19.8 Bn (Excl. Market Impact) Co
Slide 10: International Passenger Operations (Full Service Carrier)
Details of financial results for FY2024Q2 International Passenger Operations (Full Service Carrier) ✔ 1st half: Pax number grew by outbound business demand and strong inbound demand ✔ 2nd half: The recovering high-yield outbound business demand and more inbound demand, especially from South East Asia
Slide 11: Domestic Passenger Operations (Full Service Carrier)
Details of financial results for FY2024Q2 Domestic Passenger Operations (Full Service Carrier) ✔ 1st half: Group pax demand was on the rise through various demand-stimulus measures mainly for less-congested flights ✔ 2nd half: The recovering trend continues and the pax number is expected to increase y
Slide 12: Traffic results for FY2024Q2 and outlook for FY2024Q3
Traffic results for FY2024Q2 and outlook for FY2024Q3 Int’l & Domestic Passenger Operations (Full Service Carrier) demand trends Passenger Number（Vs.FY2023） International Domestic Result Outlook ©Japan Airlines, ALL rights reserved. 12
Slide 13: Cargo
Details of financial results for FY2024Q2 Cargo ✔ Int’l Cargo: Revenue increased by utilizing own freighters, improving unit price for strong demand to North America and capturing value-added goods such as pharmaceuticals. We will aim for further revenue growth in 2nd half by raising unit price for N
Slide 14: LCC
Details of financial results for FY2024Q2 LCC ✔ ZIPAIR is expected to continue to perform well ✔ SPRING JAPAN started service on high-demand routes such as Beijing and Shanghai from August, and is expected to turn to be profitable on a full-year basis Q2 (Apr. to Sep.) Q2 (Jul. to Sep.) ZIPAIR FY23Q2
Slide 15: Mileage/Finance and Commerce, Other
Details of financial results for FY2024Q2 Mileage/Finance and Commerce, Other(Ground Handling, Travel, etc) ✔ Mileage/Finance and Commerce: Profit increased y/y by issuing more mileage points and revenue growth for JALUX ✔ Other: Increased ground handling steadily with higher unit price, resulting in
Slide 16: Expenses
Details of financial results for FY2024Q2 Expenses Major Operating Expense Items Q2 (Apr. to Sep.) Q2 (Jul. to Sep.) （JPY Bn） FY23Q2 FY24Q2 Diff. y/y FY24Q2 Diff. y/y Fuel 170.0 192.3 +22.3 +13.1% 97.8 +7.2 +8.0% Landing and navigation fees 35.2 42.5 +7.3 +21.0% 21.9 +4.0 +22.5% Maintenance 60.2 70.3 +
Slide 17: Fuel Costs
Details of financial results for FY2024Q2 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Sep./2024) Hedging （JPY Bn） and FX others Volume Market +18.5 ▼7.9 192.3 +12.3 ▼0.5 170.0 ＋22.3Bn (+13.1%) FY23Q2 FY24Q2 FY24 FY25 FY26 Fuel Hedging FX Hedging Foreign currency ❏ Hedging conducted for
Slide 18: Balance Sheet and Cash Flow
Details of financial results for FY2024Q2 Balance Sheet and Cash Flow ✔ Equity ratio is 39.5% and Net D/E ratio is x0.0 both in terms of credit rating BS evaluation basis, maintained at a healthy level ✔ Maintaining positive free cash flow despite increased investment. Conducted CF debt financing as pl
Slide 19: References
1. PERFORMANCE OVERVIEW FOR FY24Q1 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q1 3. REFERENCES ©Japan Airlines, ALL rights reserved. 19
Slide 20: Operation Performance by Geographic Segment
[Reference] Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried Q2 (Apr. to Sep.) Q2 (Jul. to Sep.) Q2 (Apr. to Sep.) Q2 (Jul. to Sep.) FY24 FY24 ('000) (%) FY24Q2 Vs. FY23Q2 FY24Q2 Vs. FY23Q2 Component Vs. FY23Q2 Component Vs. FY23Q2 Ratio
Slide 21: Fleet Information
[Reference] Fleet Information End of FY23 (March 31, 2024) End of FY24Q2 (September 30, 2024) Diff. Owned Leased Total Owned Leased Total Airbus A350-1000 3 0 3 6 0 6 ＋3 Airbus A350-900 11 4 15 11 4 15 0 Large Boeing 777-300ER 13 0 13 12 0 12 ▼1 Large-sized Total 27 4 31 29 4 33 ＋2 Boeing 787-9 19 3
Slide 22: Details of FY2024 Full-Year Performance Forecast
[Reference] Details of FY2024 Full-Year Performance Forecast FY24 Impact on profit after FY24Q2 by Fuel and FX rate* Result (Incl. hedging and Fuel surcharges) (JPY Bn) Q1 Q2 Forecast(1) 1st Half Dubai (Apr. to Jun.) (Jul. to Sep.) Fuel 60USD 70USD 80USD 90USD Crude Revenue 424.0 477.7 901.8 1,930.0
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