Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q3 FY2024 Earnings Presentation
39 slides from Japan Airlines's earnings presentation, Feb 4, 2025
Slide 1: Financial Results 3rd Quarter Mar/2025 (FY2024)
JAPAN AIRLINES Co.,Ltd. Financial Results 3rd Quarter Mar/2025（FY2024） February 4, 2025 ©Japan Airlines, ALL rights reserved.
Slide 2: Agenda: Performance Overview, Details, References
SKYTRAX SKYTRAX 2024 World Airline Star APEX Best Wi-Fi in Eastern Rating World's Best WORLD CLASS Asia 2025 APEX" Premium Economy Class 5-Star 1. PERFORMANCE OVERVIEW FOR FY24Q3 The 42nd IT Awards 2024 (Open Innovation Field) 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q3 3. REFERENCES Health and Produ
Slide 3: Performance Overview for FY2024Q3
Performance Overview for FY2024Q3 ✔ EBIT exceeded our plan through capturing Int’l pax demand, stimulus measures for domestic pax demand and advancing the business model reform, resulting in revenue/EBIT growth y/y ✔ The forecast of consolidated financial results and dividend remain unchanged Revenue
Slide 4: Third quarter revenue commentary
● In the third quarter of fiscal year 2024, our revenue was 1,385.9 Billion Yen, which is a 136.5 billion yen increase year on year, mainly due to the continued strong performance of international passenger business, growth in domestic passenger business as a result of demand stimulus measures, and
Slide 5: Consolidated Revenue and EBIT Trends for Each Quarter
Consolidated Revenue and EBIT Trends for Each Quarter ✔ In Q3(Oct. to Dec. 2024), both revenue and profit increased y/y and EBIT exceeded our plan ✔ Revenue and EBIT are record high as Q3(Oct. to Dec.) since re-listing ✔ EBIT margin is also record high 12.1% as Q3(Oct. to Dec.) Revenue EBIT (JPY Bn)
Slide 6: Consolidated revenues and EBIT per quarter commentary
● This page shows an overview of consolidated revenues and EBIT for each quarter. ● The consolidated revenues for the third quarter alone was 484.1 billion yen, an increase of 55.6 billion yen from the previous year. EBIT for the third quarter alone was 58.5 billion yen, which is an increase of 20.8
Slide 7: FY2024Q3 Performance by business segment
FY2024Q3 Performance by business segment ✔ FSC: Revenue growth y/y was made through strong demand for Int'l pax, recovery of Domestic pax and cargo freighters ✔ LCC: EBIT grew as ZIPAIR continued to perform well and SPRING JAPAN captured recovering inbound demand ✔ The business model reform led non-
Slide 8: Business segment performance commentary
● This page shows the performance of each business segment. ● In the full service carrier business, revenues increased year-on-year, due to strong performance in international and domestic passenger business as well as in the cargo business. ● In the LCC business, revenues and EBIT increased due to
Slide 9: Agenda: Performance Overview, Details, References
1. PERFORMANCE OVERVIEW FOR FY24Q3 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q3 3. REFERENCES ©Japan Airlines, ALL rights reserved. 6
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INTENTIONALLY LEFT BLANK ©Japan Airlines, ALL rights reserved.
Slide 11: Details of financial results for FY2024Q3
Details of financial results for FY2024Q3 Consolidated Financial Results Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) (JPY Bn) Vs. FY23Q3 FY23Q3 FY24Q3 Diff. y/y FY24Q3 Diff. y/y Revenue 1,249.3 1,385.9 +136.5 +10.9% 484.1 +55.6 +13.0% Full Service Carrier 1,009.6 1,091.9 +82.2 +8.2% 381.7 +37.7 +11.0% Internat
Slide 12: Third quarter details commentary
● From this page, I will show you the details for the third quarter of Fiscal Year 2024. ● Page 7 shows our consolidated results. ©Japan Airlines, ALL rights reserved. 7-S
Slide 13: Changes in EBIT (Revenues/Expenses)
Details of financial results for FY2024Q3 Changes in EBIT (Revenues／Expenses) + stands for profit increase (revenue increase, cost decrease) RPK y/y ： +9.2% ▼ stands for profit decrease (revenue decrease, cost increase) ASK y/y ： +4.9% +15.2Bn (JPY Bn) Mileage/Finance and Commerce, Other (Ground Handli
Slide 14: EBIT difference factors commentary
● This page shows the factors behind the difference in EBIT from the previous year through revenue and expense. ● Revenues increased by 136.5 billion yen from the previous year as a result of the growth in each business segment. ● As for expenses, weak Yen pushed up our cost, especially Fuel and Mai
Slide 15: Changes in EBIT (Market and other impact)
Details of financial results for FY2024Q3 Changes in EBIT (Market and other impact) (JPY Bn) + stands for profit increase (revenue increase, cost decrease) Impact from ▼stands for profit decrease (revenue decrease, cost increase) +15.2Bn Currency Market ▼10.2 Bn Revenue +23.5 Bn Cost ▼33.8 Bn Fuel ▼18.
Slide 16: Market impact on EBIT commentary
● This page shows the EBIT difference by dividing it into market impacts and other factors from the previous year. ● As for market conditions in the third quarter, Singapore kerosene fell 8.9% from the previous year, while the yen depreciated from 142.2 yen last year to 152.6 yen in the third quarte
Slide 17: International Passenger Operations (Full Service Carrier)
Details of financial results for FY2024Q3 International Passenger Operations (Full Service Carrier) ✔ As the first half of this fical year, JAL continued to capture strong inbound demand and recovering outbound business demand ✔ JAL will capture strong inbound demand for further revenue increase Intern
Slide 18: International passenger commentary
● This page shows the results of full-service carrier international passenger business. ● The total number of passengers for the third quarter increased by 12.2% from the previous year, as a result of capturing strong Japan-bound demand and recovering demand from Japan. As a result, the load factor
Slide 19: Domestic Passenger Operations (Full Service Carrier)
Details of financial results for FY2024Q3 Domestic Passenger Operations (Full Service Carrier) ✔ Captured group passenger demand through stimulus measures for less-congested flights as well as strong individual passenger demand ✔ Will continue to stimulate demand for less-congested flights to secure re
Slide 20: Domestic passenger commentary
● This page shows the results of full-service carrier domestic passenger business. ● The demand of individual passengers remained strong. Also for low-demand flights, we captured the demand through stimulus measures. ● Total number of passengers in the third quarter alone increased by 5.4% from the
Slide 21: Cargo
Details of financial results for FY2024Q3 Cargo ✔ Int’l Cargo: Utilized freighters to capture North-American-bound cargo from China or Asia as well as value-added goods such as pharmaceuticals. Revenue increased by improving unit price and increasing cargo volume for Europe and North America ✔ Domest
Slide 22: Cargo business commentary
● This page shows the performance of our Cargo business. ● As for the international cargo business, both transported weight and cargo revenue increased from the previous year due to capturing the demand of high-value cargo from Asia and China to North America. ● Domestic cargo revenue also increased
Slide 23: LCC
Details of financial results for FY2024Q3 LCC ✔ ZIPAIR continues to perform well ✔ SPRING JAPAN expects to turn to be profitable on a full-year basis with significant increase in revenues compared to the previous year Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) ZIPAIR FY23Q3 FY24Q3 y/y FY24Q3 y/y Passenger Rev
Slide 24: LCC business commentary
● This page shows the performance of our LCC business. ● ZIPAIR is showing steady growth, with a significant increase in total passengers and revenues over the previous year. ● Spring Japan also showed growth in both total passengers and revenue from the previous fiscal year mainly due to the recove
Slide 25: Mileage/Finance and Commerce, Other
Details of financial results for FY2024Q3 Mileage/Finance and Commerce, Other(Ground Handling, Travel, etc) ✔ Mileage/Finance and Commerce: EBIT grew y/y through increase of JALUX revenue and number of miles points issued ✔ Other: Ground Handling continues to perform well EBIT by Mileage/Finance and
Slide 26: Mileage/Finance and Commerce commentary
● This page shows the performance of our Mileage/Finance and Commerce and Other Business. ● In the mileage/finance and commerce business, the number of issued miles is steadily increasing and EBIT showed a growth. ● Other businesses also posted an increase in profit due to steady growth in ground ha
Slide 27: Expenses
Details of financial results for FY2024Q3 Expenses Major Operating Expense Items Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) （JPY Bn） FY23Q3 FY24Q3 Diff. y/y FY24Q3 Diff. y/y Fuel 266.2 284.4 +18.2 +6.8% 92.0 ▼4.1 ▼4.3% Landing and navigation fees 53.5 65.3 +11.8 +22.1% 22.7 +4.4 +24.3% Maintenance 93.0 109.4
Slide 28: Cost breakdown commentary
● This page shows the breakdown of the cost. ● Total operating expenses increased by 124.0 billion yen from the previous year to 1,253.7 billion yen, due to the impact of market conditions, such as weak yen, as well as an increase in various expenses, including expenses linked to the scale of operat
Slide 29: Fuel Costs
Details of financial results for FY2024Q3 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Dec./2024) Hedging （JPY Bn） and Volume Market FX others +20.3 ▼22.3 +18.7 +1.4 284.4 266.2 ＋18.2Bn (+6.8%) FY23Q3 FY24Q3 FY24 FY25 FY26 Fuel Hedging FX Hedging Foreign currency ❏ Hedging conducted for
Slide 30: Fuel cost and hedging commentary
● This page explains our fuel cost and hedging. ● The fuel cost for the third quarter was 284.4 billion yen, increased by 18.2 billion yen year-on-year. ● The upper right graph shows the current progress of hedging. The lower part of the graph shows the conceptual diagram of our fuel and currency he
Slide 31: Balance Sheet and Cash Flow
Details of financial results for FY2024Q3 Balance Sheet and Cash Flow ✔ Equity ratio is 40.7% and Net D/E ratio is 0.0x, both in terms of credit rating BS evaluation basis, which are maintained at a healthy level CF ✔ Positive free cash flow despite increased investment Balance Sheet End of FY23 End o
Slide 32: Balance sheet and cash flow commentary
● Finally, I will explain our balance sheet and cash flow. ● As of the end of December, the equity ratio on a credit rating basis was 40.7% and the net D/E ratio was 0.0 times. ● Our cash position at the end of December was 696.3 billion yen. ● The operating cash flow was 251.6 billion yen of inflow
Slide 33: References
1. PERFORMANCE OVERVIEW FOR FY24Q3 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q3 3. REFERENCES ©Japan Airlines, ALL rights reserved. 18
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Slide 35: Operation Performance by Geographic Segment
[Reference] Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) FY24 FY24 ('000) (%) FY24Q3 Vs. FY23Q3 FY24Q3 Vs. FY23Q3 Component Vs. FY23Q3 Component Vs. FY23Q3 Ratio
Slide 36: Fleet Information
[Reference] Fleet Information End of FY23 (March 31, 2024) End of FY24Q3 (December 31, 2024) Diff. Owned Leased Total Owned Leased Total Airbus A350-1000 3 0 3 7 0 7 ＋4 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 30 4 34 ＋3 Boeing 787-9 19 3 2
Slide 37: Impact on profit in FY24Q4 by Fuel and FX
[Reference] Impact on profit in FY24Q4 by Fuel and FX* (Incl. hedging and Fuel surcharges) Dubai 60USD 70USD 80USD 90USD Fuel Crude (JPY Bn) Prices (USD/bbl) Singapore 80USD 90USD 100USD 110USD Kerosene 140JPY ＋11.0 ＋8.0 ＋5.0 ＋2.0 Base 145JPY ＋9.5 ＋6.5 ＋3.5 ±0 FX 150JPY ＋9.0 ＋5.5 ＋2.0 ▼1.5 (JPY/USD)
Slide 38: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 22
Slide 39: 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