Skymark Airlines Inc.TSE: 9204

Summary of Financial Results for the FY2024（514KB）

May 15, 2025 at 6:41 AM UTC · Issued by Skymark Airlines Inc.

May 15, 2025

Financial Results for the Fiscal Year Ended March 31, 2025 under Japanese GAAP

Company Name	Skymark Airlines Inc. (hereinafter referred to as "Skymark" or the "Company")
URL	https://www.skymark.co.jp/
Stock exchange listing	Tokyo Stock Exchange
Code number	9204
Representative	Manabu Motohashi, Representative Director, President and Executive Officer
Contact	Kaoru Tagami, Executive Officer, General Manager of Finance and Accounting Department (Tel: +81-3-5708-8280)
Scheduled date of the ordinary general meeting of shareholders	June 26, 2025
Scheduled starting date of dividend payment	June 27, 2025
Scheduled date of filing the Securities Report (Japanese version only)	June 26, 2025
Supplementary material on financial results	To be uploaded on "Investor Relations" of the Company's website
Financial results briefing	To be held for institutional investors and analysts

Operating Results and Financial Position as of and for the Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

Operating Results

Year Ended

(Millions of Yen)

Operating

Revenues

Operating Income

Ordinary Income

Net Income

March 31, 2025

¥108,893

4.6

¥1,826

(60.9)

¥760

(89.8)

¥2,146

(28.4)

March 31, 2024

104,075

22.9

4,668

35.2

7,463

101.0

2,997

(47.7)

Year Ended

(Yen)

Net Income

Per Share-Basic

Net Income

Per Share-Diluted

March 31, 2025

¥36.14

March 31, 2024

49.93

Year Ended (%)

Return on Equity

(Net income / Shareholders' equity)

Return on Assets

(Ordinary income / Total assets)

Operating Margin

March 31, 2025

7.8

0.7

1.7

March 31, 2024

11.6

6.8

4.5

Equity earnings of affiliates	Year ended March 31, 2025	¥－ million
	Year ended March 31, 2024	- million

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

Financial Position

Total Assets

(Millions of Yen）

Total Equity

(Millions of Yen)

Net Worth Ratio

(%)

Equity

Per Share (Yen)

March 31, 2025

¥103,888

¥27,119

26.1

¥450.32

March 31, 2024

110,790

27,857

25.1

472.57

(Note) Net worth	As of March 31, 2025:	¥27,119 million
	As of March 31, 2024:	27,857 million

Cash Flows

Year Ended (Millions of Yen)

Net Cash Flows from Operating Activities

Net Cash Flows from Investing Activities

Net Cash Flows from Financing Activities

Cash and Cash Equivalents,

End of Year

March 31, 2025

¥7,182

¥ (5,011)

¥(2,949)

¥26,018

March 31, 2024

8,179

(2,186)

(2,326)

26,909

Dividends

Dividend Per Share (Yen)
Year Ended	First Quarter End	Second Quarter End	Third Quarter End	Year/Period End	Total
March 31, 2024	-	0.00	-	29.00	29.00
March 31, 2025	-	0.00	-	3.00	3.00
March 31, 2026 (Projected)	-	0.00	-	-	-

Year Ended	Total Amount of Dividends for the Year/Period (Millions of Yen)	Payout Ratio	Dividend on Equity
March 31, 2024	1,709	58.1%	6.7%
March 31, 2025	180	8.3%	0.7%
March 31, 2026 (Projected)	N/A	－%	N/A

(Note) 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 projected amount of dividends for the year ending March 31, 2026 has not yet been determined.

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) 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

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

Number of shares

		(shares)
(a) Common stock issued, including treasury stock, as of:	March 31, 2025	60,329,400
	March 31, 2024	60,329,400
(b) Treasury stock as of:	March 31, 2025	106,430
	March 31, 2024	1,380,014
(c) Average number of common stock for the year ended:	March 31, 2025	59,378,012
	March 31, 2024	60,020,217

Other Information

This financial report is not subject to review by certified public accountants or audit firms.
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.
Access to the supplementary material on financial results

The Company plans to hold an online financial results presentation for institutional investors and analysts on Thursday, May 15, 2025. The video of the presentation and supplementary materials on financial results will be promptly uploaded on "Investor Relations" of the Company's website.

Qualitative Information on Operating Results

Operating Results (April 1, 2024 to March 31, 2025)
During this fiscal year, the economy in Japan was in a moderate recovery trend mainly due to an improvement in the employment and income environment and the increased inbound demand. On the other hand, the outlook still requires careful attention due to decline in personal consumptions caused by soaring prices, unstable global conditions and significant foreign exchange rate fluctuations influenced by such conditions, and other factors.
In the domestic market of the airline industry in which the Company operates, operating performance remained robust, mainly due to solid domestic travel demand and continued growth in inbound travel, despite the rising travel cost.
In such a situation, the number of revenue passengers during the period reached 8,140,789 (up 2.4% as compared to the previous year), and operating revenue reached a record high.
In terms of operating expenses, the continued depreciation of the yen, the global inflation, reduction of government support and other factors resulted in an increase in operating expenses as compared to the previous year. In response to these cost increases, the Company worked to contain expenses through self-help measures such as reviewing operational tasks and thorough cost control, and raised the unit fare per passenger on the premise of improving service quality. As a result, the unit fare per passenger raised as compared to the previous year, despite the increased passenger price sensitivity. However, although the unit price per passenger remained favorable from the fourth quarter compared to the initial forecast, it was not enough to make up for the downward trend until the third quarter, resulting in a less operating income compared to the previous year.
As one of the key factors to accomplish the Company's mid- to long-term management goals, the Company continued to improve the quality of its services pursuing better customer satisfaction. As a result of these efforts, Skymark was ranked number one in customer satisfaction in the domestic long-distance transportation category in the 2024 JCSI (Japanese Customer Satisfaction Index) survey conducted by the Service Productivity & Innovation for Growth of Japan Productivity Center for the three consecutive years.
(Operational system)
In the current fiscal year, domestic passenger demand remained steady due to a return of domestic travel demand on the back of the weak yen and an increase in the number of inbound passengers as a result of the relaxation of border measures. In light of this situation, in order to best meet the diverse customer transportation needs, the Company aggressively set up additional scheduled flights on trunk lines where demand is particularly concentrated, in an effort to increase transportation capacity and improve customer convenience.
As a result, the number of flights operated during the year ended March 31, 2025 was 56,528, up 2.6%, as compared to the previous year (55,087 flights), although the number of aircraft was the same.
(Operating revenues and operating costs)
In this fiscal year, operating revenues amounted to ¥108,893 million, up 4.6%, as compared to the previous year, due to the steady increase in passenger demand. Operating costs amounted to ¥100,187 million, up ¥7.3%, as compared to the previous year, due to the depreciation of yen and hikes in purchase costs affected by the worldwide inflation. As a result, operating income amounted to ¥1,826 million, down 60.9%, as compared to the previous year.
Ordinary income amounted to ¥760 million, down 89.8%, as compared to the previous year, due to foreign exchange loss associated with assets denominated in foreign currencies resulting from the stronger yen as of March 31, 2025 as compared to March 31, 2024 . Net income amounted to ¥2,146 million, down 28.4%, as compared to the previous year, due to the effect of recording income taxes―deferred of (¥1,301) million.
Financial Position (As of March 31, 2025)
Total assets stood at ¥103,888 million, ¥6,901 million down from the previous fiscal year-end. This was mainly attributable to decrease in other receivables by ¥1,819 million, decrease in foreign exchange contracts by ¥1,415 million, and decrease in derivative receivables by ¥1,525 million.
Total liabilities stood at ¥76,769 million, ¥6,163 million down from the previous fiscal year-end. This was mainly attributable to decrease in provision for periodic maintenances of flight equipment by ¥4,240 million due to the implementation of heavy maintenance of aircraft, and decrease in long-term bank loans by ¥1,250 million due to repayments.
Equity stood at ¥27,119 million, ¥738 million down from the previous fiscal year-end. This was mainly attributable to a combined effect of increase in retained earnings by ¥436 million due to net income for the period, ¥1,304 million increase due to disposal of treasury stock associated with the restricted stock compensation granted to directors and employees, decrease in deferred gain on derivatives under hedge accounting by ¥2,092 million in relation to derivative transactions including foreign exchange contracts.
Cash Flows (April 1, 2024 to March 31, 2025)
Cash and cash equivalents as of the year-end stood at ¥26,018 million, ¥890 million down from the previous fiscal year-end (¥26,909 million). Cash flows for the year ended March 31, 2025 are summarized as follows:
(Cash flows from operating activities)
Net cash inflow from operating activities was ¥7,182 million (¥8,179 million in the previous fiscal year). The major components were income before income taxes of ¥877 million and decrease in long-term deposits paid of ¥5,509 million.
(Cash flows from investing activities)
Net cash outflow from investing activities was ¥5,011 million (¥2,186 million in the previous year). The major component was purchases of property and equipment of ¥4,609 million.
(Cash flows from financing activities)
Net cash outflow from financing activities was ¥2,949 million (¥2,326 million in the previous year). The main components were repayments of long-term bank loans of ¥1,250 million and dividends paid of ¥1,551 million.
Outlook

The airline industry in which the Company operates has been supported by strong passenger demand; however, the Company must continue to pay close attention to global inflation, rising purchase prices due to the weak yen, and the need to secure human resources amid diversifying work styles.

In this environment, the Company believes that there are many growth opportunities for Skymark in the future, including the expansion of slots at Haneda Airport, Kobe Airport, Fukuoka Airport and other airports, as well as the expansion of leisure and inbound demand. In anticipation of the growth stage, the Company will establish a structure that will enable the Company to secure stable profits even in a changing competitive environment where various risks are becoming apparent, and to grow continuously as an essential and favored airline, by further stimulating potential demand by improving customer experience values through the enhancement of digital marketing by utilizing CRM tools, while maintaining low-cost operations by introducing next-generation aircraft that are expected to significantly improve fuel efficiency by around 15%, with safe operations as a major premise.

In addition, the Company has a "Basic Sustainability Policy" to contribute to the sustainable development of society by providing safe, reliable, and high-quality airline services at affordable prices to all people. The Company will actively work to address climate change by introducing next-generation aircraft, improving operational efficiency, and using SAF (Sustainable Aviation Fuel), to implement measures to improve employee work styles and job satisfaction, and to collaborate with local governments and corporations.

In developing new air routes, the Company considers various factors in a diversified way to select them not only routes from/to major domestic airports, but also routes that directly connect regional areas, taking into account not only business and tourist demand but also the regional demand.

The assumptions used in preparing forecasts for the year ending March 31, 2026 are as follows: (a) foreign currency exchange rate: ¥150 to one U.S. dollar (hedged: ¥142.1 to one U.S. dollar) and (b) crude oil price on the Dubai market: U.S.$75 per barrel (hedged: U.S.$75.1 per barrel).

Basic approach to the selection of accounting standards

Since the Company does not have any subsidiaries, the Company does not prepare consolidated financial statements. The Company prepares its financial statements in accordance with Japanese GAAP, taking into consideration the workload of preparing financial statements in accordance with International Financial Reporting Standards.

Financial Statements

Balance Sheets

(Millions of Yen)

	Year End-Current Year	Year End-Current Year
	As of March 31, 2024	As of March 31, 2025
Assets
Current Assets:
Cash and bank deposits	¥26,909	¥26,018
Trade accounts receivable	5,752	5,467
Supplies	70	56
Other receivables	4,267	2,448
Prepaid expenses	4,234	4,332
Derivative receivables	1,298	62
Foreign exchange contracts	1,905	952
Other current assets	32	84
Total current assets	44,473	39,424
Non-Current Assets:
Property and equipment:
Flight equipment	22,925	22,934
Accumulated depreciation	(12,625)	(14,094)
Accumulated impairment losses	(73)	(73)
Flight equipment―net	10,226	8,765
Buildings and building improvements	3,054	3,055
Accumulated depreciation	(1,768)	(1,891)
Buildings and building improvements―net	1,285	1,164
Structures	19	19
Accumulated depreciation	(18)	(18)
Structures―net	1	0
Machinery and equipment	548	533
Accumulated depreciation	(546)	(533)
Machinery and equipment―net	1	0
Vehicles	3,705	3,789
Accumulated depreciation	(3,555)	(3,634)
Vehicles―net	149	154
Tools, furniture and fixtures	2,223	2,219
Accumulated depreciation	(1,823)	(1,718)
Accumulated impairment losses	(1)	(1)
Tools, furniture and fixtures―net	398	499
Leased assets	2,181	1,407
Accumulated depreciation	(1,508)	(974)
Accumulated impairment losses	(315)	-
Leased assets―net	358	432
Construction in progress	1,478	4,743
Total property and equipment	13,899	15,762
Intangible assets:
Software	224	123
Others	57	94
Total intangible assets	281	218

	Year End-Current Year	Year End-Current Year
As of March 31, 2024		As of March 31, 2025
Investments and other assets:
Investments in capital	¥0	¥0
Long-term prepaid expenses	141	533
Lease and guarantee deposits	4,155	3,961
Long-term deposits paid	29,932	24,423
Deferred tax assets	17,067	19,478
Derivative receivables	297	8
Foreign exchange contracts	540	78
Other assets	0	0
Total investments and other assets	52,136	48,483
Total non-current assets	66,317	64,464
Total assets	110,790	103,888
Liabilities
Current Liabilities:
Trade accounts payable	4,050	3,805
Short-term bank loans	20,000	20,000
Current portion of long-term bank loans	1,250	1,750
Lease obligations	146	108
Other payables	335	80
Accrued expenses	699	779
Income taxes payable	32	32
Contract liabilities	13,688	13,862
Deposits received	1,080	1,120
Provision for periodic maintenances of flight equipment	14,743	7,288
Accrued bonuses	962	903
Derivative liabilities	-	133
Other	30	32
Total current liabilities	57,019	49,897
Long-term Liabilities:
Long-term bank loans	9,250	7,500
Lease obligations	450	497
Provision for maintenance to return leased flight equipment	3,236	2,461
Provision for periodic maintenances of flight equipment	12,328	15,543
Asset retirement obligations	445	320
Derivative liabilities	-	259
Foreign exchange contracts	-	52
Other	203	238
Total long-term liabilities	25,913	26,871
Total liabilities	82,932	76,769

(Millions of Yen)

	Year End-Current Year	Year End-Current Year
As of March 31, 2024		As of March 31, 2025
Equity
Shareholders' equity:
Common stock	¥100	¥100
Capital surplus
Capital reserve	-	-
Other capital surplus	18,353	17,966
Total capital surplus	18,353	17,966
Retained earnings
Legal retained earnings	25	25
Other retained earnings
Retained earnings brought forward	8,396	8,833
Total retained earnings	8,421	8,858
Treasury stock	(1,393)	(89)
Total shareholders' equity	25,481	26,835
Remeasurement and adjustments:
Deferred gain (loss) on derivatives under hedge accounting	2,376	284
Total remeasurement and adjustments	2,376	284
Total equity	27,857	27,119
Total liabilities and equity	110,790	103,888

Statements of Income

(Millions of Yen)

	Year Ended March 31, 2024	Year Ended March 31, 2025
Operating revenues:
Air transportation revenue	¥101,395	¥106,060
Freight revenue	11	7
Ancillary services revenue	2,669	2,824
Total operating revenues	104,075	108,893
Operating costs:
Air transportation costs	93,339	100,117
Other costs	38	69
Total operating costs	93,377	100,187
Gross profit	10,698	8,705
Selling, general and administrative expenses
Sales commissions	879	963
Advertising	159	231
Directors' remuneration	244	258
Salaries and wages	1,100	1,288
Accrual of bonuses	148	107
Welfare expenses	238	272
Travel and transportation	74	87
System-related expenses	486	494
Outsourcing expenses	615	882
Fees and commissions	1,162	1,226
Rent	115	121
Supplies	327	365
Taxes and dues	58	70
Depreciation and amortization	94	124
Other	321	381
Total selling, general and administrative expenses	6,029	6,878
Operating income	4,668	1,826
Non-operating income：
Interest income	35	316
Foreign exchange gain	2,493	-
Subsidy income	28	79
Income from scrap sales	205	180
Penalty income	887	933
Other	185	182
Total non-operating income	3,836	1,693
Non-operating expenses：
Interest expenses	456	544
Foreign exchange loss	-	1,644
Commissions and fees	397	263
Loss on disposal of property and equipment	91	216
Other	95	90
Total non-operating income	1,041	2,759
Ordinary income	7,463	760

(Millions of Yen)

	Year Ended March 31, 2024	Year Ended March 31, 2025
Special gains:
Gain on reversal of asset retirement obligations	¥－	¥117
Total special gains	-	117
Income before income taxes	7,463	877
Income taxes―current	32	32
Income taxes―deferred	4,434	(1,301)
Total income taxes	4,466	(1,268)
Net income	2,997	2,146

Statements of Changes in Equity

(Millions of Yen)
					Shareholders' Equity						Remeasurement and Adjustments
			Capital Surplus		Retained Earnings
Year Ended March 31, 2024	Common Stock	Capital Reserve	Other Capital Surplus	Total		Legal Retained Earnings	Other Retained Earnings― Retained Earnings Brought Forward	Total	Treasury Stock	Total	Deferred Gain (Loss) on Derivatives under Hedge Accounting	Total	Total Equity
Beginning balance	¥100	¥ －	¥18,353	¥18,353		¥－	¥5,726	¥5,726	¥ －	¥24,179	¥(262)	¥(262)	¥23,917
Changes during the year:
Dividends	-	-	-	-		25	(326)	(301)	-	(301)	-	-	(301)
Net income	-	-	-	-		-	2,997	2,997	-	2,997	-	-	2,997
Purchase of treasury stock	-	-	-	-		-	-	-	(1,393)	(1,393)	-	-	(1,393)
Other, net	-	-	-	-		-	-	-	-	-	2,638	2,638	2,638
Total changes	-	-	-	-		25	2,670	2,695	(1,393)	1,301	2,638	2,638	3,939
Ending balance	100	-	18,353	18,353		25	8,396	8,421	(1,393)	25,481	2,376	2,376	27,857

(Millions of Yen)
					Shareholders' Equity						Remeasurement and Adjustments
			Capital Surplus		Retained Earnings
Year Ended March 31, 2025	Common Stock	Capital Reserve	Other Capital Surplus	Total		Legal Retained Earnings	Other Retained Earnings― Retained Earnings Brought Forward	Total	Treasury Stock	Total	Deferred Gain (Loss) on Derivatives under Hedge Accounting	Total	Total Equity
Beginning balance	¥100	¥ －	¥18,353	¥18,353		¥25	¥8,396	¥8,421	¥ (1,393)	¥25,481	¥2,376	¥2,376	¥27,857
Changes during the year:
Dividends	-	-	-	-		-	(1,709)	(1,709)	-	(1,709)	-	-	(1,709)
Net income	-	-	-	-		-	2,146	2,146	-	2,146	-	-	2,146
Purchase of treasury stock	-	-	-	-		-	-	-	(0)	(0)	-	-	(0)
Disposal of treasury stock	-	-	(387)	(387)		-	-	-	1,304	917	-	-	917
Other, net	-	-	-	-		-	-	-	-	-	(2,092)	(2,092)	(2,092)
Total changes	-	-	(387)	(387)		-	436	436	1,304	1,353	(2,092)	(2,092)	(738)
Ending balance	100	-	17,966	17,966		25	8,833	8,858	(89)	26,835	284	284	27,119

Statements of Cash Flows

(Millions of Yen)

	Year Ended March 31, 2024	Year Ended March 31, 2025
Cash flows from operating activities：
Income before income taxes	¥7,463	¥877
Depreciation and amortization	2,474	2,730
Increase (decrease) in provision for periodic maintenances of flight equipment	(204)	(4,240)
Increase (decrease) in provision for maintenance to return leased flight equipment	(325)	(775)
Decrease (increase) in accrued bonuses	(51)	(59)
Interest and dividend income	(35)	(316)
Interest expenses	456	544
Foreign exchange loss (gain)	(1,074)	190
Gain on reversal of asset retirement obligations	-	(117)
Income from scrap sales	(205)	(180)
Subsidy income	(28)	(79)
Insurance income	(0)	-
Loss on disposal of property and equipment	91	216
Decrease (increase) in trade accounts receivable	(296)	284
Decrease (increase) in supplies	(52)	14
Decrease (increase) in prepaid expenses	(616)	403
Decrease (increase) in other receivables	(1,733)	1,933
Decrease (increase) in long-term deposits paid	1,170	5,509
Increase (decrease) in trade accounts payable	12	(184)
Increase (decrease) in contract liabilities	1,522	174
Increase (decrease) in other payable	290	61
Decrease (increase) in consumption taxes receivable	(407)	(112)
Increase (decrease) in consumption taxes payable	(331)	-
Other	279	308
Subtotal	8,397	7,182
Interests and dividends received	35	316
Interests paid	(455)	(544)
Proceeds from scrap sales	205	180
Subsidy income received	28	79
Insurance income received	0	-
Income taxes paid	(32)	(32)
Net cash flows from operating activities	8,179	7,182

	Year Ended March 31, 2024	Year Ended March 31, 2025
Cash flows from investing activities:
Purchases of property and equipment	¥(1,682)	¥(4,609)
Proceeds from sales of property and equipment	17	2
Purchases of intangible assets	(85)	(95)
Payment for lease and guarantee deposits	(435)	(309)
Net cash flows from investing activities	(2,186)	(5,011)
Cash flows from financing activities:
Net increase (decrease) in short-term bank loans	(10,000)	-
Proceeds from long-term bank loans	10,000	-
Repayment of long-term bank loans	(500)	(1,250)
Repayments of lease obligations	(157)	(148)
Payments for purchase of treasury stock	(1,393)	(0)
Dividends paid	(275)	(1,551)
Net cash flows from financing activities	(2,326)	(2,949)
Foreign currency translation adjustments on cash and cash equivalents	723	(111)
Net increase (decrease) in cash and cash equivalents	4,389	(890)
Cash and cash equivalents, beginning of year	22,519	26,909
Cash and cash equivalents, end of year	26,909	26,018

Notes to Financial Statements

Going Concern Issues

No items to report.

Equity Method

There are no items to report since the Company does not have any associated companies.

Segment Information

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

Per Share Information

	Year Ended March 31, 2024	Year Ended March 31, 2025
Equity per share (yen)	¥472.57	¥450.32
Basic earnings per share (yen)	49.93	36.14

(Note 1) Net income per share-diluted is not presented because the Company did not have any kind of potentially dilutive shares.

(Note 2) Basis for computing basic earnings per share is as follows:

	Year Ended March 31, 2024	Year Ended March 31, 2025
Net income attributable to owners of the parent (millions of yen)	¥2,997	¥2,146
Net income not attributable to common shareholders (millions of yen)	-	-
Net income attributable to common Shareholders (millions of yen)	2,997	2,146
Average number of shares of common stock outstanding during the year (shares)	60,020,217	59,378,012

Significant Subsequent Event

No items to report.

Other Information

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. All the figures in this report are unaudited.