Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q1 FY2024 Earnings Presentation
40 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: Performance overview commentary
● In the first quarter of fiscal year 2024, our revenue was 424 Billion Yen, which is a 42 billion yen increase year on year, mainly due to the steady recovery of passenger demand especially Japan-bound traffic. ● EBIT was 22.1 billion yen, approximately 9.2 billion yen lower than the previous year.
Slide 5: 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 6: Business segment commentary
● This page shows the result of each business segment. ● EBIT of Full-Service Carrier business for the first quarter was 7.9 billion yen, and the LCC business also posted a positive EBIT of 2.2 billion yen due to a recovery in demand. ● Mileage/Finance and Commerce business also recorded stable prof
Slide 7: 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 8: Recent initiatives commentary
● This page explains our recent initiatives. ©Japan Airlines, ALL rights reserved. 5-S
Slide 9: 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
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Slide 11: Details of financial results for FY2024Q1
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 12: Consolidated results commentary
● From this page, I will show you the details for the first 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 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 14: EBIT change commentary
● This page shows the factors behind the differencet in EBIT from the previous year through revenue and expense. ● Revenues increased by 42.6 billion yen from the previous year owing to a steady growth in international passenger, LCCs, mileage/finance/commerce businesses. ● Expenses increased in lin
Slide 15: 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 16: Market impact commentary
● This page shows the EBIT difference by dividing it into market impacts and other factors from the previous year. ● The impact of market conditions, including a weaker yen and higher jet fuel prices, pushed down EBIT by 4.3 billion yen compared to the previous year. ● Excluding the impact of market
Slide 17: 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 18: International passenger commentary
● This page shows the results of full-service carrier international passenger business. ● In terms of international passenger volume, total passenger numbers increased by 11% from the previous year due to strong Japan-bound demand. ● Meanwhile, our yield remained high, increasing 3% from the previou
Slide 19: 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 20: Domestic passenger commentary
● This page shows the results of full-service carrier domestic passenger business. ● The number of the domestic passenger decreased by 6% from the previous year due to sluggish growth in some passenger categories, such as group passengers. On the other hand, the yield improved by 9% from the previou
Slide 21: 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 22: Cargo 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 the operation of Boeing 767 freighters. ● Domestic cargo revenue also increased due to the launch of A321 freighter op
Slide 23: 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 24: LCC 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. We expect further growt
Slide 25: 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 26: Mileage and other business 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 stable EBIT is being recorded. ● In other businesses, the number of ground handling contracts and its unit p
Slide 27: 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 28: Expenses commentary
● This page shows the breakdown of the cost. ● Total operating expenses increased by 53.1 billion yen from the previous year to 406.1 billion yen, due to the impact of market conditions, such as weak yen and rising jet fuel prices, as well as an increase in various expenses, including expenses linke
Slide 29: 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 30: Fuel cost and hedging commentary
● This page explains our fuel cost and hedging. ● The fuel cost for the first quarter was 94.5 billion yen, increased by 15.1 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 hed
Slide 31: 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 32: Balance sheet and cash flow commentary
● Finally, I will explain our balance sheet and cash flow. ● As of the end of June, the equity ratio on a credit rating basis was 38.9% and the net D/E ratio was 0.0 times. ● Our cash position at the end of June was 819.3 billion yen, which is 105.5 billion yen increase from the end of March 2024. ●
Slide 33: References
1. PERFORMANCE OVERVIEW FOR FY24Q1 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q1 3. REFERENCES ©Japan Airlines, ALL rights reserved. 18
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Slide 35: 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 36: 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 37: 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 38: 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 39: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 23
Slide 40: 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