The Japan Airline Group (JAL) Group reported a Q1 operating profit of 31.3 billion yen ($219 million) and a net profit attributable to owners of 23 billion yen ($161m). Japan Airlines Group (JAL Group) announced its consolidated financial results for the first quarter of Fiscal Year 2023 (FY23Q1), covering the period from April 1st to June 30th, 2023.
The Group reported positive earnings before interest and tax (EBIT) and Net Profit for the first time in four years
Compared to the first quarter of last year, revenue was up by 42%, EBIT climbed by 59 billion yen ($413m), and net profit turned from a loss of 19.5 billion yen ($136m) to a profit of 23 billion yen, a turnaround of 42.5 billion yen ($297m).
The JAL Group includes Japan Airlines, ZIPAIR, SPRING JAPAN and Jetstar Japan.
JAL Group said that fuel expenses increased by 13.7% year on year due to the increased traffic, while overall operating expenses grew by 16.5%, well below the 37% growth in traffic volumes. It said that keeping expenses below the production volume was achieved due to a program of robust cost control.
Japan Airlines saw passenger numbers increase by 2.2 times and revenue by 2.4 times year on year, attributed to continuing strong demand in international markets following the end of border restrictions.
The Group reported a 100% return to the pre-pandemic levels with the domestic passenger numbers and revenue up 1.4 times as compared to same time last year.
Japan Airlines launched a new nonstop service between Tokyo Haneda (HND) and Dalian (DLC) in China. It also announced a nonstop service between Haneda and Doha Hamad International (DOH) in the Summer 2024 schedule and a change of aircraft on the Haneda - New York route. From the winter schedule this year, the airline will switch to the eagerly-awaited Airbus A350-1000, which is expected to cut fuel consumption by around 15-25% compared to current aircraft.
As for the low-cost carries in the Group JAL said: “SPRING JAPAN which targets routes in China and Jetstar Japan which mainly operates domestic flights. In contrast, ZIPAIR looks after the low-cost long-haul sector, although all three will strive to build a network based at Narita Airport that aims to create a new flow of people, including young people and families."
ZIPAIR started servicing San Francisco in June, its third West Coast USA route. ZIPAIR carried 4.6 times more passengers and generated 5.7 times more revenue than in FY22Q1.