JAL has recorded its second quarter financial results for the fiscal year, which ends March 2025.
During the second quarter consolidated revenue for the JAL Group increased by 9.9%, when compared to the same quarter of the year prior, increasing to JPY 901.8 billion ($5.9 billion).
Total consolidated operating expenses incurred by the group equated to JPY 824.3 billion ($5.4 billion) for the quarter, that is up by 11.9% against the comparable period of the year prior. This rise in expenses was mainly due to higher fuel costs caused by the weaker Japanese yen and increased costs linked to revenue increases.
Earnings before interest and tax (EBIT) totalled JPY 85.6 billion ($563 million) for the quarter, this is down by 6.1% compared to the same quarter of the previous year. The groups consolidated EBIT margin also declined, down by 1.6 percentage points from 2023, to 9.5%. Net profit also declined during the quarter when compared to the same period of 2023, totalling JPY 49.8 billion ($327 million).
Away from consolidated results, Japan Airlines recorded a 7.2% increase in total revenue compared to the same period of the year prior, revenues for the airline totalled JPY 711.6 billion ($4.6 billion).
The airline put this increase in revenue down to recovering demand in international, domestic, and cargo segments. However, despite revenue growth, EBIT decreased by 22.2% in comparison to 2023 to JPY 56.8 billion ($373 million).
International passenger revenue rose by 8.3% compared to 2023 to JPY 340.5 billion ($2.2 billion), with the airline citing a “strong inbound demand and a steady recovery in outbound business travel from Japan.” Domestic passenger revenue also saw an increase, rising modestly by 2.2% to JPY 280.4 billion ($1.8 billion).
Elsewhere during the quarter, Japan Airlines has taken delivery of its sixth Airbus A350-1000, launching a daily service on its Haneda-Dallas Fort Worth route as of August 23, 2024, while commencing operations on the Haneda-London route from October 24, 2024. The airline is also set to deepen its network through new partnerships, such codeshare with IndiGo, India’s largest airline, is scheduled to begin in December of this year, while a joint business agreement with Garuda Indonesia will launch in spring 2025.
The group's full-year forecast of consolidated financial results for the fiscal year remains unchanged from its forecast announced on May 2, 2024. JAL expects consolidated revenue of JPY 1 trillion 930 billion ($12.6 billion), the EBIT of JPY 170 billion ($1.1 billion), and the net profit of JPY 100 billion ($656 million).