Skymark Airlines Inc.TSE: 9204

Supplementary Material for Financial Results Q1 FY2025 (FY2026/3)（1MB）

Aug 12, 2025 at 6:49 AM UTC · Issued by Skymark Airlines Inc.

Skymark Airlines Inc. Supplementary Material for Financial Results Q1 FY2025 (FY2026/3) August 12, 2025

*In this material, definitions are, FY: fiscal year (from April 1 to March 31 of the next year), Q1: from April to June, Q2: from July to September, Q3: from October to December, Q4: from January to March

Operating revenues reached a record high, but fell short of the Q1 assumption1 in the

earnings forecast

The average price per passenger exceeded the Q1 target, rising by JPY 861 (+7.5%) year-on-year to JPY 12,330, driven by strategic price increases
While a decrease was anticipated due to the yield improvement strategy, the number of revenue passengers declined by 6.9% year-on-year to 1,856 thousand, exceeding expectations amid intensified price competition
2
Despite posting a seasonal loss, all key profit metrics exceeded their Q1 targets, supported by cost reductions from lower crude oil prices and a stronger yen
Operating loss improved year-on-year driven by controlling costs despite increased expenses resulting from reduced government support and increased personnel investments
Ordinary loss reflected foreign exchange losses on foreign currency-denominated assets and liabilities due to yen appreciation
3
Continued focus on evolution and transformation to a more profitable business structure
Various measures were implemented, including the introduction of new fares, preparations for launching web reservations for
forward seats, revisions to various fees, and the expansion of cargo routes
4
Ordered six new Boeing 737-8s and three additional 737-10s
A total of 20 aircraft have been contracted to replace all of the current fleet of Boeing 737-800s

Note:

1. Hereafter, 'Q1 assumption' will be referred to as 'Q1 target'

Overview of Financial Results for Q1 FY2025 Operating revenues reached a record high, while the seasonal operating loss improved year-on-year

Broke the record

Operating Revenues

Financial Results
Q1 FY2024 Unit: JPY MM		Q1 FY2025	vs. Q1 FY2024
Operating Revenues	23,542	23,579	+0.2%
Passenger Revenues	22,860	22,885	+0.1%
Other Revenues	681	693	+1.8%
Operating Expenses	25,725	25,210	▲2.0%
Operating Costs	24,097	23,444	▲2.7%
SG&A	1,628	1,765	+8.5%
Operating Income (Loss)	▲2,182	▲1,630	-
Operating Income Margin (%)	▲9.3	▲6.9	+2.4pt
Ordinary Income (Loss)	▲1,024	▲3,113	-
Income(Loss) before Income Taxes	▲1,024	▲3,113	-
Net Income (Loss)	▲1,516	▲2,774	-
Adjusted Net Income(Loss)1	▲670	▲2,036	-

Dubai Crude Oil Price (After Hedging)(US$/Barrel)	77.3	70.9	▲8.3%
Exchange Rate Used for Fuel Cost(After Hedging)(JPY/US$)	151.9	146.2	▲3.8%
Exchange Rate Used for Foreign Currency Transactions (After Hedging)(JPY/US$)	141.2	138.5	▲1.9%

(JPY Bn)

16.2

8.9

25.0

20.0

15.0

10.0

5.0

0.0

22.1

23.5 23.5

(JPY Bn) 0.0

▲5.0

Q1 FY2021

▲ 1.4

▲ 2.2

▲ 2.1

▲ 1.6

Operating Income (Loss)

▲ 6.1

Q1 FY2022

Q1 FY2023

Q1 FY2024

Q1 FY2025

Note:

1. Income (loss) before income taxes ×(1－effective tax rate 34.59%)

▲10.0

FY2021

FY2022

FY2023

FY2024

FY2025

Travel Demand

The number of passengers declined year on year due to a strategic increase in average price per passenger To respond to intensifying price competition in non-business demand, we implemented dynamic pricing strategies based on specific routes and time of day

Q1 FY2025

Revenue passengers: 93％ YoY

Passenger Demand (Reference) Monthly Trends

Revenue passengers (in thousands),

Number of seats (in thousands)

3,000

Revenue passengers

(in thousands)

98.6%

102.9%

100.0%

2,500

2,000

1,000

97.3%

702

92.0% 92.4%

94.9%

93.4%

624

608

643

634

682

692

675

660

624

574

640 641

707

90.0%

1,500

500

1,000

80.0%

2,435

2,441

2,453

2,418

2,503

2,523

2,514

2,463

2,510

2,082

2,156

2,024

2,045

1,890

1,951

1,993

1,945

1,856

500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

1月

2月

3月

4月

5月

6月

7月

Jan Feb Mar Apr May Jun Jul

70.0%

FY2023

Revenue passengers

FY2024

FY2025

前年同月比

2025年

2024年

2024

2025

YoY change

Number of seats

Load Factor and Yield Performance(Q1)

Efforts to improve average price per passenger resulted in a decline in load factor1 but a significant increase in yield2

Seeking the optimal balance between load factor and average price per passenger based on demand trends and market conditions to maximize revenue

Load Factor Yield

(Unit: JPY)

COVID-19

100%

12.0

COVID-19

11.8

90%

80%

70%

60%

50%

81% 81% 80%

79% 81%

60%

74%

11.5

11.0

10.5

10.0

9.7

9.9

Q1 FY2025

Average Price

per Passenger : JPY12,330 vs. Q1 FY2024: +JPY861

vs. Q1 Target: +JPY143

10.6

11.3

45%

10.0

11.2

10.8

10.9

40%

9.5

36%

30%

Q1 Q1 Q1

Q1 Q1

9.0

Q1 Q1

Q1 Q1 Q1

Notes:

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

Load Factor is calculated as follows: RPK (revenue passenger kilometers) / ASK (available seat kilometers)
Yield is calculated as follows: Passenger Revenue / RPK