Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — H1 FY2024 Earnings Presentation
41 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: Performance Overview, Details of Financial Results, References
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: First half revenue and EBIT summary
● Our revenue for the first half of the fiscal year ending March 31, 2025 was 901.8 billion yen, an increase of 80.8 billion yen year-on-year, mainly due to international passenger revenues from strong Japan-bound demand and recovering business demand from Japan. ● EBIT was 85.6 billion yen, which i
Slide 5: 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 6: Results of each business segment
● This page shows the result of each business segment. ● EBIT of the Full-Service Carrier business for the first half was 56.8 billion yen, driven by international passenger and cargo business. ● In addition to the strong performance of ZIPAIR, Spring Japan also returned to be profitable, posting LC
Slide 7: 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 8: Recent initiatives
● This page explains our recent initiatives. ©Japan Airlines, ALL rights reserved. 5-S
Slide 9: Performance Overview, Details of Financial Results, References
1. PERFORMANCE OVERVIEW FOR FY24Q2 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q2 3. REFERENCES ©Japan Airlines, ALL rights reserved. 6
Slide 10: Intentionally Left Blank
INTENTIONALLY LEFT BLANK ©Japan Airlines, ALL rights reserved.
Slide 11: 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 12: Details of first half results
● From this page, I will show you the details for the first half 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 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 14: Factors behind EBIT difference
● This page shows the factors behind the difference in EBIT from the previous year through revenue and expense. ● Our revenue increased by 80.8 billion yen from the previous year as a result of growth in all business segment. ● As for expenses, weak Yen pushed up our cost, especially Fuel and Mainte
Slide 15: 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 16: EBIT difference by market impacts
● This page shows the EBIT difference by dividing it into market impacts and other factors from the previous year. ● Regarding market conditions, while jet fuel prices remained at about the same level as the previous year, the yen depreciated significantly from 138.7 yen last year to 154.0 yen this
Slide 17: 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 18: International passenger business results
● This page shows the results of full-service carrier international passenger business. ● The total number of the International Passenger increased by 9.9% year on year, capturing the recovering demand from Japan and continued strong Japan-bound demand. ● Also, the Yield remained high, increasing 0.
Slide 19: 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 20: Domestic passenger business results
● This page shows the results of full-service carrier domestic passenger business. ● In the domestic passenger business, the Group passenger showed signs of recovery as we took various measures to stimulate the demand. As a result, the number of passenger declined only 1.4% from the strong previous
Slide 21: 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 22: Passenger results and outlook
● This page shows the results and outlook of the number of passengers of full-service carrier passenger business. ● For international, the number of passenger was around 110% in the first half from previous year. From October, we expect a growth to reach 119% in December from previous year. ● For do
Slide 23: 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 24: Cargo business performance
● This page shows the performance of our Cargo business. ● As for the international cargo business, both carried cargo weight and the cargo revenue increased from the previous year due to improved unit prices, especially for cargo from Asia, where demand to North America is strong, Also we focused o
Slide 25: 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 26: LCC business performance
● This page shows the performance of our LCC business. ● ZIPAIR has continued to grow steadily from the first quarter, with strong growth in total passengers and revenues over the previous year. ● Spring Japan launched services to Beijing and Shanghai in August, where demand is strong, and is expect
Slide 27: 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 28: Mileage/Finance and Commerce and Other performance
● This page shows the performance of our Mileage/Finance and Commerce and Other Business. ● In this domain, profit increased from the previous year due to growth in the number of miles issued and an increase in both revenue and profit of JALUX which is our subsidiary trading company. ● Other busines
Slide 29: 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 30: Breakdown of expenses
● This page shows the breakdown of the expense. ● Total operating expenses increased by 87.6 billion yen from the previous year to 824.3 billion yen, due to the impact of market conditions, such as weak yen, as well as an increase in various expenses, including costs linked to the scale of operation
Slide 31: 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 32: Fuel cost and hedging
● This page explains our fuel cost and hedging. ● The fuel cost for the first half was 192.3 billion yen, increased by 22.3 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 hedgi
Slide 33: 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 34: Balance sheet and cash flow explanation
● Finally, I will explain our balance sheet and cash flow. ● As of the end of September, the equity ratio on a credit rating basis was 39.5% and the net D/E ratio was 0.0 times. ● Our cash position at the end of September was 750.6 billion yen. ● The operating cash flow was 183.9 billion yen of infl
Slide 35: References
1. PERFORMANCE OVERVIEW FOR FY24Q1 2. DETAILS OF FINANCIAL RESULTS FOR FY24Q1 3. REFERENCES ©Japan Airlines, ALL rights reserved. 19
Slide 36: Intentionally Left Blank
INTENTIONALLY LEFT BLANK ©Japan Airlines, ALL rights reserved.
Slide 37: 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 38: 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 39: 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 40: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 23
Slide 41: 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