Financial Results for First Quarter of the Fiscal Year Ended March 2026 (FY2025)
August 12, 2025(Tue)
17:00－17:40
Respondents:
Managing Director and Executive Officer: Takeshi Kiriyama
Executive Officer, Finance & Accounting / IR: Kaoru Tagami
Please be advised that the following text has been edited/modified from the original Q&A conversations for clarity.
A. Though operating revenues fell short of the Q1 target, operating expenses were approximately JPY2.8 billion below the Q1 target. Of this amount, JPY0.8 billion was attributable to a temporary impact from timing differences. Excluding this, the actual
reduction in Q1 expenses was approximately JPY2.0 billion, which reflects the effects of lower crude oil prices and a stronger yen than initially anticipated. Regarding the specific amounts of the revenue shortfall and the outperformance of the operating loss, we do not disclose these figures.
Q2. Please provide an update on the progress of your maintenance expenses against the annual plan.A. Maintenance expenses were JPY1.4 billion below the Q1 target, of which JPY0.4 billion was due to timing differences. Excluding this timing effect, the actual reduction in expenses was JPY1.0 billion. The reversal of the provision for maintenance resulted from updating the maintenance plan for the current fleet, as the schedule for introducing new aircraft became more defined. Other items are generally progressing as planned.
Q3. What is your view of the business environment from Q2 onward, and how do you plan to balance load factor and average price per passenger in light of intensifying price competition?A. Price competition in non-business demand segment continues due to ongoing sales promotions by competitors. Since the balance between load factor and average price per passenger varies by route and flight, we intend to seek the optimal balance between the two in Q2 and beyond. There is no change in our policy of making efforts to improve average price per passenger.
Q4. What is the outlook for average price per passenger in Q2?A. There is no change in our policy of increasing the average price per passenger. Furthermore, there are no signs of a decline in the average price per passenger in Q2. We aim to maximize operating revenues by pursuing an optimal balance through flexible pricing strategies tailored to routes and times of day.
Q5. How do you expect new measures such as new fare sales and integration with the business travel management system to contribute to your financial results?A. The sale of new fares for young people and the integration with the business travel management system are intended to strengthen the appeal to young traveler segment and to the business traveler segment that has not been captured so far, respectively. Although we will refrain from discussing the specific amount of the expected effect, we expect a certain level of revenue increase.
Q6. What is the outlook for delivery of new aircraft?A. Regarding the introduction of new aircraft, we have not received any notifications of delays at this time, and we do not anticipate any significant deviations from the schedule outlined in the financial results materials.