*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 for the cumulative Q3 reached a record high, as performance in Q3
progressed generally in line with the earnings forecast.
1
Average price per passenger increased JPY562 (+4.4%) year-on-year to JPY13,406 for Q1-Q3 driven by strategic fare increases measures.
The number of revenue passengers, which had been trending negative year-on-year due to intensified price competition, turned to a year-on-year increase in Q3 thanks to successful measures to optimize the number of passengers and average price per passenger.
Operating income was slightly below the cumulative Q3 target due to an increase in provision for maintenance (originally expected in Q4). Ordinary income and items below exceeded targets due to the recording of foreign exchange gains resulting from yen
2 depreciation.
Operating income was below the cumulative Q3 target. While ongoing efforts to reduce controllable costs were more effective than expected, income was impacted by an increase in maintenance provisions to appropriately reflect soaring maintenance costs driven by inflation. This increase was originally planned for the fourth quarter but recorded in the third quarter as a timing difference, resulting in no impact on the full-year earnings forecast.
Ordinary income and income before income taxes, which serve as the basis for our dividends, exceeded targets due to foreign exchange gains on revaluation of foreign currency-denominated assets and liabilities.
First new Boeing 737-8 aircraft expected to be received in April 2026.
3
Skymark to become the first Japanese airline to receive the Boeing 737-8.
Operating revenues reached a record high. However, operating expenses increased due to a reduction in government support and increased personnel investments, resulting in lower operating profit
Financial Results
Operating Revenues
Q1-Q3 FY2024 Unit: JPY MM | Q1-Q3 FY2025 | vs. Q1-Q3 FY2024 | |
Operating Revenues | 81,736 | 82,893 | +1.4% |
Passenger Revenues | 79,574 | 80,534 | +1.2% |
Other Revenues | 2,161 | 2,358 | +9.1% |
Operating Expenses | 80,040 | 82,434 | +3.0% |
Operating Costs | 74,880 | 76,920 | +2.7% |
SG&A | 5,160 | 5,514 | +6.8% |
Operating Income | 1,695 | 458 | ▲73.0% |
Operating Income Margin (%) | 2.1 | 0.6 | ▲1.5pt |
Ordinary Income | 2,038 | 985 | ▲51.7% |
Income before Income Taxes | 2,105 | 985 | ▲53.2% |
Net Income | 2,663 | 961 | ▲63.9% |
Adjusted Net Income1 | 1,377 | 644 | ▲53.2% |
Dubai Crude Oil Price (After Hedging)(US$/Barrel) | 76.6 | 69.8 | ▲8.9% |
Exchange Rate Used for Fuel Cost(After Hedging)(JPY/US$) | 152.6 | 148.0 | ▲3.0% |
Exchange Rate Used for Foreign Currency Transactions (After Hedging)(JPY/US$) | 139.4 | 141.2 | +1.3% |
(JPY Bn)
62.5
35.6
90.0
60.0
30.0
Broke the record
78.2 81.7 82.8
0.0
Operating Income (Los s)
(JPY Bn)
3.4
1.6
0.4
5
0
▲5
Q1-Q3 FY2021
Q1-Q3 FY2022
Q1-Q3 FY2023
5.2
Q1-Q3 FY2024
Q1-Q3 FY2025
Note:
1. Income before income taxes ×(1－effective tax rate 34.59%)
▲10
▲15
▲ 11.3
Q1-Q3
FY2021
Q1-Q3
FY2022
Q1-Q3
FY2023
Q1-Q3
FY2024
Q1-Q3
FY2025
Travel DemandThrough the appropriate control of load factor and average price per passenger, the number of revenue passengers in Q3 turned to year-on-year growth.
New fares for young passengers also contributed to early capture of bookings.
Q3 FY2025
Revenue passengers: 100.3％ YoY
Passenger Demand (Reference) Monthly Trends
Revenue passengers (in thousands), Number of seats (in thousands)
3,000
Revenue passengers (in thousands)
100.9%
103.0%
101.2%
100.0%
2,500
1,000
94.9%
93.4%
92.0%92.4%
97.5%97.1%
2,000
692
740
707 733 715
747
726 676
1,500
500
624
574
640
675
641
660
697
668
648
629
90.0%
1,000
80.0%
2,435
2,441
2,453
2,418
2,503
2,523
2,514
2,463
2,510
2,536
2,528
2,082
2,156
2,024
2,045
2,099
2,051
1,890
1,951
1,993
1,945
1,856
500
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
0
4月
5月
6月
7月
8
9月
Apr May Jun Jul Au月g Sep
10
Oc月t
11
No月v
12
De月c
70.0%
FY2023
FY2024
有償旅客数 提 供座席数
Revenue passengers
2024年
2025年
前年同 月比
2024
2025
YoY change
FY2025
Number of seats
Load Factor and Yield Performance(Q1-Q3)Efforts to improve average price per passenger resulted in a decline in load factor1, while yield2 increased s ignificantly To address an environment of intensifying price competition in non- business demand, we are capturing demand with dynamic pricing based on specific routes and flights
Load Factor Yield
(Unit: JPY)
100%
COVID-19
13.5
COVID-19
90%
80%
70%
60%
50%
40%
85% 84% 84%
10.2 10.2
48%
54%
73%
83% 83%
80%
13.0
12.5
12.0
11.5
11.0
10.5
10.0
10.5
11.0 11.1
11.1
Q1-Q3 FY2025
Average Price
per Passenger : JPY13,406
vs. Q1-Q3 FY2024: +JPY562
(Reference) Q3 FY2025
Average Price
per Passenger : JPY13,230vs. Q3 FY2024: +JPY246
12.0
12.2
12.8
30%
0%
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
0
9.5
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
Q1-Q3
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Notes:
Load Factor is calculated as follows: RPK (revenue passenger kilometers) / ASK (available seat kilometers)
Yield is calculated as follows: Passenger Revenue / RPK
Changes in Operating Income (vs. Q1-Q3 FY2024)Despite increased revenue and lower costs driven by reduced crude oil prices, operating profit declined.
after hedging
Q1-Q3
FY2024
Q1-Q3
FY2025
Crude oil price
76.6US$/BBL
69.8US$/BBL
FX rate
139.4JPY/US$
141.2JPY/US$
This was due to an increase in operating expenses, including fuel costs and taxes, airport usage fees, and personnel expenses, resulting from reduced government support and strengthened investments in human resources
(Unit: JPY Bn)
1.6
Q1-Q3 FY2024
fluctuations 1
+1.64
and tax
▲1.48
0.4
Market
Fuel costs
▲1.2
+ : Profit increase (revenue increase, cost decrease)
▲: Profit decrease (revenue decrease, cost increase)
Q1-Q3 FY2025
Revenue
increase
+1.15
Airport Usage Aircraft
Fees
▲0.94
lease
payment
+0.58
Maintenance
expenses
▲0.20
Personnel
expenses
▲0.71
Bonuses
▲0.31
Depreciation
and Amortization
▲0.42
Other
expenses 2
▲0.53
※2 Details of changes in other expenses
▲0.18 ： Increase in system-related expenses
▲0.10 ： Increase in airport-related outsourcing expenses
Termination of government support
Reduction in government support
※1 Details of changes in market fluctuations
Cost incurred from changes in difference between exchange rate after hedging and oil price after hedging
+1.95 ： Fuel cost
▲0.11 ： Aircraft lease payment
▲0.18 ： Maintenance expense
▲0.01 ： Other expense
Q1-Q3 | Q1-Q3 | vs. Q1-Q3 FY2024 | |||
Unit: JPY MM | FY2024 | FY2025 | Change (JPY) | From Market Fluctuations | From Other Factors |
Number of Aircraft (Average for each fiscal year) | 29.0 | 29.0 | — | — | — |
Available Seat-km (ASK) (MM seats km) | 7,876 | 7,856 | ▲19 | — | — |
Fuel Cost and Tax | 24,069 | 23,597 | ▲472 | ▲1,958 | +1,485 |
Airport Usage Fees | 5,817 | 6,765 | +948 | — | +948 |
Aircraft Lease Payment | 8,959 | 8,484 | ▲474 | +112 | ▲586 |
Maintenance Expenses | 12,665 | 13,051 | +386 | +181 | +205 |
Personnel Expenses (Excluding Bonuses) | 13,337 | 14,047 | +710 | — | +710 |
Bonuses | 1,171 | 1,488 | +317 | — | +317 |
Depreciation and Amortization | 2,073 | 2,497 | +423 | — | +423 |
Others | 11,946 | 12,501 | +555 | +17 | +538 |
Total Operating Expenses | 80,040 | 82,434 | +2,393 | ▲1,647 | +4,041 |
Dubai Crude Oil Price (After Hedging)(US$/Barrel) | 76.6 | 69.8 | ▲6.8 | — | — |
Exchange Rate Used for Fuel Cost (After Hedging)(JPY/US$) | 152.6 | 148.0 | ▲4.6 | — | — |
Exchange Rate Used for Foreign Currency Transactions (After Hedging)(JPY/US$) | 139.4 | 141.2 | +1.8 | — | — |
Major Changes from Previous Period (Q1-Q3 FY2024)
(Unit: JPY MM)
Increase due to reduced government support
Decrease due to market factors (low crude oil prices)
Impact of termination of government support
Decrease due to purchase of leased aircraft (Switched one in-service aircraft to ownership)
Increase in heavy maintenance expenses due to inflation
Increase in number of personnel, salary increases, etc.
Recording of stock compensation expenses
Increase due to purchase of leased aircraft and acquisition of a simulator for the new 737-8 aircraft
Increase in various expenses such as system-related expenses, airport-related outsourcing expenses, and crew hotel costs
▲472
Decrease in Fuel Cost and Tax
Increase in Airport Usage Fees
+948
Decrease in Aircraft Lease Payment
▲474
Increase in Maintenance Expenses
+386
Increase in Personnel Expenses
+710
Increase in Depreciation and Amortization
+423
Increase in Others
+555
Details on Respective Profit in Q1-Q3 FY2025Recorded foreign exchange gains on the revaluation of foreign currency-denominated assets and liabilities as of the end of Q3, due to a weaker yenChange in Respective Profit
0.4
0.9
No change
0.9
0.9
0.6
Operating
Income
Ordinary
Income
Income before
Income Taxes
Net Income
Adjusted Net
Income1
Foreign exchange gain, etc.
(Unit: JPY Bn)
Reference: Foreign exchange gains/losses
Assets and liabilities denominated in foreign currencies are converted at the exchange rate as of the end of each quarter. If the yen appreciates compared to the exchange rate at the end of the previous quarter, a foreign exchange loss will be recorded in the accounts, while if the yen depreciates, a foreign exchange gain will be recorded.
Foreign exchange gains in Q3: JPY1.21 billion
＜Major Assets and Liabilities Denominated in Foreign Currencies ＞
Skymark has more assets denominated in foreign currencies than liabilities
Major foreign currency denominated assets | Long-term deposits paid, Lease and guarantee deposits, Cash and bank deposits |
Major foreign currency denominated liabilities | Provision for periodic maintenances of flight equipment, Provision for maintenance to return leased flight equipment |
＜Exchange Rates at the End of Each Quarter＞
(Quarterly exchange rates)
・As of the end of Q4 FY2024: 149.5 JPY/US$
・As of the end of Q1 FY2025: 144.8 JPY/US$
・As of the end of Q2 FY2025: 148.8 JPY/US$
・As of the end of Q3 FY2025: 156.5 JPY/US$
JPY160
JPY140
Q1FY2025
Foreign exchange loss
Q3FY2025
Foreign exchange gain
Note:
2024/12 2025/3 2025/6 2025/9 2025/12
1. Dividends are based on adjusted net income. Adjusted net income = Income before income taxes × (1－effective tax rate 34.59%)、Annual dividend payout = Adjusted net income × Payout ratio of 35%
Earnings Forecast for FY2025Unit: JPY Bn | FY2025 Revised Forecast | Q1-Q3 Actual | Achievement Rate vs. Revised Forecast (As of the end of Q3) | Details | （Reference） FY2025 Initial Forecast |
Operating Revenues | 111.0 | 82.9 | 74.7% | ・Operating revenues progressed generally in line with the earnings forecast ・For the standalone Q3, average price per passenger and the number of revenue passengers exceeded the previous year’s ; both ended the quarter within the expected range | 117.3 |
Operating Income | 1.6 | 0.4 | 28.6% | ・Although operating income progressed generally in line with the target due to the continued containment of manageable expenses, it fell slightly short of the goal due to the impact of additional maintenance provisions originally planned for Q4. ・A gain on reversal of engine maintenance provisions (approximately JPY 1 billion) is expected to be recorded in Q4. | 2.0 |
Ordinary Income | 1.0 | 0.9 | 98.5% | ・Foreign exchange gains of JPY1.21 billion were incurred due to a weaker yen (Exchange rate at end of Q2: 148.8 JPY/US$; Exchange rate at end of Q3: 156.5 JPY/US$) ・Net income is subject to change based on the future business plan currently being prepared (fluctuations in income tax adjustments). | 2.1 |
Income before Income Taxes | 1.0 | 0.9 | 98.5% | 2.1 | |
Net Income | 0.1 | 0.9 | 962.0% | 1.3 |
Unit JPY MM Mar 31 2025 | Dec 31 2025 | vs Previous Period | |
Assets | 103,888 | 109,769 | +5.7% |
Cash and Bank Deposits | 26,018 | 19,763 | ▲24.0% |
Aircraft | 8,765 | 9,203 | +5.0% |
Long-term Deposits | 24,423 | 23,757 | ▲2.7% |
Deferred Tax Assets | 19,478 | 19,145 | ▲1.7% |
Other Assets | 25,202 | 37,899 | +50.4% |
Liabilities | 76,769 | 81,269 | +5.9% |
Short-term Bank Loans | 21,750 | 27,854 | +28.1% |
Contract Liabilities | 13,862 | 11,188 | ▲19.3% |
Long-term Bank Loans | 7,500 | 7,590 | +1.2% |
Allowance for Maintenance | 25,292 | 25,887 | +2.4% |
Other Liabilities | 8,363 | 8,749 | +4.6% |
Equity | 27,119 | 28,500 | +5.1% |
Shareholders’ Equity | 26,835 | 27,616 | +2.9% |
Common Stock | 100 | 100 | — |
Capital Surplus | 17,966 | 17,966 | — |
Retained Earnings | 8,858 | 9,639 | +8.8% |
Treasury Stock | ▲89 | ▲89 | — |
Deferred Gain (Losses) on Derivatives under Hedge | 284 | 883 | +211.0% |
Accounting | |||
Unit JPY MM | Mar 31 2025 | Dec 31 2025 | vs Previous Period |
Total Debt 1 | 29,855 | 35,967 | +20.5% |
Net Debt 2 | 3,836 | 16,204 | +322.3% |
Equity Ratio (%) | 26.1 | 26.0 | ▲ 0.1pt |
Net D/E Ratio (x)3 | 0.1 | 0.6 | +0.4pt |
Unit JPY MM Mar 31 2025
Applicable Until FY20304 | 30,396 |
Applicable Until FY20314 | 15,064 |
Total | 45,460 |
Notes：
Total Debt: Short-term Bank Loans + Long-term Bank Loans + Lease Obligations (on-balance finance lease)
Net Debt: Total Debt － Cash and Bank Deposits
Net D/E Ratio: Net Debt / Equity
Taxable income (before deduction of NOL carryforwards) is generated during the carryforward period of NOL carryforwards, we assume, based on the current tax system, that