The JAL Group has reported results for the first fiscal quarter ending June 30, 2021, which despite continuing restrictions on travel, shows an increase in revenue by 74.1% year on year to ¥133bn. JAL’s the operating expense increased by 4.7 % year on year to ¥215.4bn, the loss/earning before financing and income tax was a loss of ¥82.6bn compared to an EBIT loss of ¥131bn in the same period in the previous year.
The number of passengers on international routes was 151,000 up 345.9% up from the same period in the previous year and international passenger revenue was ¥11.2bn. The number of passengers on domestic routes was 2,708, 000 up 120% from the same period in the previous year and domestic passenger revenue was ¥38b up 100.8% on last year’s numbers. Cargo mail revenue was ¥47.6bn, an increase of 79.3% compared to last year.
JAP confirmed that it used some of the funds raised through the public offerings in November 2020 to infuse capital to SPRINGJAPAN and Jetstar Japan. SPRING JAPAN became JAL’s consolidated subsidiary from the First Quarter Period. Together with ZIPAIR, JAL hopes that the three different Narita-based LCCs will constitute a global network to capture rapidly recovering post-COVID travel demand.
In June 2021, JAL financed ¥30bn through issuance of straight bond and ¥24.4bn through bank
loans, resulting in ¥357bn of cash at hand at the end of June. Together with the unused credit line of ¥300bn, JAL has secured a sufficient amount of liquidity at hand that is more than ¥650bn.
JAL has reduced its monthly cash burn to ¥10 to ¥15bn per month with a second quarter decline is expected to about ¥5bn per month.
JAL reports a strong performance of international cargo, and an upward trend in deposits from ticketing for domestic flights.
JAL Group has secured 42.4% of equity ratio in what it termed as “difficult situations”, adding that sufficient long-term fund has been secured for ¥573.2bn of Interest-bearing debts and ¥74.3bn
of repayment within one year including lease payment, D/E Ratio still remains low at 0.6x. Operating cash outflow greatly improved year on year from ¥130.2bn to ¥45.8bn.