Financial Results for the Three Months Ended June 30, 2025 under Japanese GAAP（290KB）

August 12, 2025

1. Operating Results and Financial Position as of and for the Three Months Ended June 30, 2025 (April 1, 2025 to June 30, 2025)

   1. Operating Results

      Three Months Ended June 30 (Millions of Yen)	Operating Revenues			Operating Income (Loss)		Ordinary Income (Loss)				Net Income (Loss)
      2025	¥23,579	0.2	%	¥(1,630)	-	%	¥(3,113)	-	%	¥(2,774)	-	%
      2024	23,542	6.3		(2,182)	-		(1,024)	-		(1,516)	-

      Three Months Ended June 30 (Yen)	Net Income (Loss) Per Share-Basic	Net Income (loss) Per Share-Diluted
      2025	¥(46.06)	-
      2024	(25.73)	-

      (Note) Net income (loss) per share-diluted is not presented because the Company does not have any kind of potentially dilutive shares.

   2. Financial Position

   	Total Assets (Millions of Yen）	Equity (Millions of Yen)	Net Worth Ratio (%)
   June 30, 2025	¥104,604	¥23,317	22.3	%
   March 31, 2025	103,888	27,119	26.1

   (Note) Net worth	As of June 30, 2025:	¥23,317 million
   	As of March 31, 2025:	27,119 million

2. Dividends

   Dividend Per Share (Yen)
   Year Ended	First Quarter End	Second Quarter End	Third Quarter End	Year/Period End	Total
   March 31, 2025	-	0.00	-	3.00	3.00
   March 31, 2026	-	N/A	N/A	N/A	N/A
   March 31, 2026 (Projected)	N/A	0.00	-	-	-

   (Note 1) Change in dividend projection: None

   (Note 2) The Company's Articles of Incorporation stipulate the end of the second quarter and the end of the fiscal year as the record dates for dividends. The dividends for the year ending March 31, 2026 has not yet been determined.

3. Forecasts for the year ending March 31, 2026 (April 1, 2025 to March 31, 2026)

   	Operating Revenues (Millions of Yen)	Operating Income (Millions of Yen)	Ordinary Income (Millions of Yen)	Net Income (Millions of Yen)	Net Income per Share （Yen）
   Year ending March 31, 2026
   (amount)	¥117,300	¥2,000	¥2,100	¥1,200	¥19.93
   (percentage)	7.7%	9.5%	176.2%	(44.1)%	N/A

   (Note 1) Changes from the forecasts most recently announced: None

   (Note 2) The forecasts for the six months period ending September 30, 2025 have been omitted because the Company manages its operations on an annual basis.

   Notes

   1. Changes in accounting policy and estimates, and restatement due to:

      (a) Changes in accounting policy due to revision of accounting standards:	None
      (b) Changes in accounting policy other than (a) above:	None
      (c) Changes in accounting estimates:	None
      (d) Restatements:	None

   2. Number of shares

1. Review on the accompanying financial statements by certified public accountants or audit firms

   The original Japanese version of the financial statements have been reviewed on a voluntary basis. This English translation is not subject to review.

2. Explanation regarding the appropriate use of earnings forecasts and other special notes

   The forward-looking statements in this report, such as forecasts, are based on information currently available and certain assumptions that the Company believes to be reasonable and should not be construed as a guarantee that the Company will achieve these projections. Actual results may differ from the aforementioned forecasts depending on various factors.

3. Access to the supplementary material on financial results

The Company plans to hold an online financial results presentation for institutional investors and analysts on Tuesday, August 12, 2025. The video of the presentation and supplementary materials on financial results will be promptly uploaded on "Investor Relations" of the Company's website.

1. Operating Results (April 1, 2025 to June 30, 2025)

   During this three-month period, the economy in Japan was in a moderate recovery trend due to an improvement in the employment and income environment, and expansion of inbound consumption. On the other hand, the outlook still requires careful attention due to weak personal consumption caused by rising prices, increased uncertainty surrounding

   U.S. tariff policy, and escalating tensions in the Middle East and other factors.

   In the domestic airline market in which the Company operates, travel demand remained strong due to a shift toward domestic travel caused by the weak yen and rising prices overseas. On the other hand, domestic airlines have enforced their efforts to capture non-business demand, resulting in an even more intense price competition environment than before.

   In such a severe situation, the number of revenue passengers during the period reached 1,856,059 (down 6.9% as compared to a year earlier). Although the number of revenue passengers decreased due to the strategic pricing aimed at maximizing revenue, the unit fare per passenger exceeded that from a year earlier. As a result, operating revenue reached a record high for the first quarter.

   Operating expenses are increasing due to rising prices caused by global inflation, reduced government support, and other factors. In response to these cost increases, the Company has worked to contain expenses through self-help measures such as reviewing operational tasks and thorough cost control.

   The Company has been working on the management policies for the fiscal year ending March 31, 2026: "Evolution and transformation into a highly profitable business structure" and "Preparations for dramatic growth in the fiscal year ending March 31, 2027 and beyond," and has revised various fees and charges. In addition, the Company has promoted a wide range of measures, including preparations for the following items: online reservations for forward seats with the aim of improving customer convenience; introduction of new fares for young people; and operation of international charter flights to examine business possibilities.

   (Operating revenues and operating costs)

   In this three-month period, operating revenues amounted to ¥23,579 million, up 0.2%, as compared to a year earlier, due to the steady passenger demand. Operating costs amounted to ¥23,444 million, down 2.7% as compared to a year earlier, due to a decrease in outsourcing expenses associated with aircraft maintenance. As a result, the Company recorded an operating loss of ¥1,630 million (¥2,182 million a year earlier).

   The Company recorded ordinary loss of ¥3,113 million (¥1,024 million a year earlier), due mainly to ¥1,054 million of foreign exchange loss associated with assets denominated in foreign currencies resulting from the appreciation of the yen,

   which was recorded in the non-operating losses section. Net loss amounted to ¥2,774 million (¥1,516 million a year earlier).

2. Financial Position (As of June 30, 2025)

   Total assets stood at ¥104,604 million, ¥715 million up from the previous fiscal year-end. This was mainly attributable to a combined effect of decrease in (1) cash and bank deposits by ¥1,529 million and (2) other receivables by ¥1,006 million, and increase in (1) construction in progress by ¥1,715 million associated with purchases of airplanes and (2) machinery and equipment by ¥1,623 million associated with purchases of full flight simulators.

   Total liabilities stood at ¥81,286 million, ¥4,517 million up from the previous fiscal year-end. This was mainly attributable to increase in contract liabilities by ¥3,450 million and derivative payables by ¥893 million.

   Equity stood at ¥23,317 million, ¥3,801 million down from the previous fiscal year-end. This was mainly attributable to decrease in retained earnings by ¥2,954 million due to dividends paid and net loss for the period.

3. Forecasts and Forward-Looking Statements

No revision has been made to the forecasts for the year ending March 31, 2026, which were announced in "Financial Results for the Fiscal Year Ended March 31, 2025 under Japanese GAAP" on May 15, 2025.

Balance Sheets

(Millions of Yen)

Statements of Income

(Millions of Yen)

Significant Items That Formulate the Basis for Preparing Quarterly Financial Statements

The accompanying quarterly financial statements of the Company have been prepared in accordance with Article 4-1 of the Standards for Preparation of Quarterly Financial Statements issued by Tokyo Stock Exchange (the "TSE Quarterly Standard") and Japanese GAAP for the quarterly financial statements (applying the omissions set forth in Article 4-2 of the TSE Quarterly Standard).

Segment Information

As the Company engages in a single segment, namely, the air transportation business, segment information is not presented.

Significant Changes in Equity

No items to report.

Going Concern Issues

No items to report.

Cash Flow Statements

The Company did not prepare the cash flow statements for the three months ended June 30, 2024 and 2025. Depreciation and amortization for the three months ended June 30, 2024 and 2025, were as follows:

(Millions of Yen)

Significant Subsequent Event

Significant refinancing of funds:

On July 28, 2025, the Company has entered into syndicated loan (refinancing) agreements of which arrangers are Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Resona Bank, Limited., and Development Bank of Japan Inc. On July 31, 2025, the Company executed the loan agreements with the following terms and conditions:

The financial statements in the original Japanese version were reviewed by Deloitte Touche Tohmatsu LLC whose report, dated August 8, 2025, issued a negative assurance on the financial statements.

All the figures in this report except per share information are rounded down to the nearest million.

This information is summarized and translated from the original Japanese version submitted to the Tokyo Securities Exchange in accordance with its disclosure rules and presentation manners. This English translation is intended solely for the convenience of readers, and not intended in any way to substitute or replace the original Japanese version. If there is any discrepancy between the original Japanese version and this translation, the original Japanese version shall supersede all information in this translation.