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May 09, 2005
Japan Airlines Corporation and Consolidated Subsidiaries Results for the Year Ended March 31 2005

TOKYO MAY 9,2005: Japan Airlines Corporation, today announced the consolidated financial results of the JAL Group for the year ended March 31, 2005. The announcement includes the company's forecast for the year ending March 31, 2006.

・Total sales revenues were 2,129.8 billion yen (10.2% up on the previous year)

・Total operating costs were 2,073.7 billion yen (3.7% up on the previous year)

・Operating income was 56.1 billion yen (in the previous year, a loss of 67 billion yen)

・Ordinary income was 69.8 billion yen (previous year, a loss of 71 billion yen)

・Net income was 30 billion yen (previous year, a loss of 88 billion yen)

・International passenger traffic increased by 25.5%

・JAL's fuel bill rose 18% on the previous year to a total of 288.9 billion yen.

Units:millions of yen

Final Result FY 2004

(Year ending Mar 31, 2005)

Forecast revised on March 10, 2005

Previous Result FY2003

(Year ending Mar 31, 2004)

Total operating revenue

2,129,800

2,121,000

1,931,700

International Passenger revenue

671,200

669,000

549,700

Domestic passenger Revenue

674,700

671,000

668,800

International cargo Revenue

171,300

171,100

153,000

Operating income (loss)

56,100

55,000

(-67,600)

Ordinary income (loss)

69,800

68,000

(-71,900)

Net income (loss)

30,000

27,000

(-88,600)

FACTORS IN THE RESULTS

1. International passenger

Although the recovery in demand of group leisure travel on S.E.Asia and China routes was lower than forecast, passenger demand that had fallen due to SARS showed clear signs of steady recovery and the international revenue passenger total was 25.5% up on the previous year.

Revenue totaled 671.2 billion yen, 121.5 billion yen more than in FY2003. The number of international passengers carried by JAL Group airlines rose to 14,743,222. (FY2003 total: 11,745,032).

2. Domestic passenger

JAL made efforts to increase competitiveness by introducing new passengers services, including a new passenger class, `'Class J'', featuring a new seat and time-saving and more convenient check-in system based on the use of IC (integrated circuit) cards, the JAL IC Check-in service. However travel demand, which had shifted from international travel in FY2003, returned to international travel in FY2004. Another factor was the high occurrence of typhoons in the year, causing many flight cancellations and service disruptions. As a result the total number of domestic passengers was down 3.7% to 44,705,084. However, yield per passenger increased by 4.7% over the previous year. Domestic passenger revenue increased by 5.9 billion yen to 674.7 billion yen.

3. International cargo

International cargo traffic did very well because of an increase in business activities in the USA and China markets. Revenue cargo in terms of revenue ton kilometers performed was up by 7.1% on the previous year and demand significantly increased.

Commodities including DVD players, digital cameras, flat screen televisions - products and parts - showed great growth in exports and imports. Revenues were up by 18.3 billion yen to 171.3 billion yen. Total tonnage carried was 804,940 tons, 8.1% up on the previous year.

4. Others:

The price of fuel, using the benchmark of Singapore kerosene, had averaged US$33.0 per barrel in the previous

year, but rose to an average of US$49.8 per barrel in the year ended March 31, 2005, resulting in an increase in JAL's fuel bill of 44.1 billion yen, to a total of 288.9 billion yen (up 18%).

Non-operating income included 29.2 billion yen in credit memos linked to aircraft purchases.

The average US dollar exchange rate changed from the previous year's rate of 114 yen to the dollar to an average rate for the year of 107.6 yen, which had the effect of boosting international air transport segment income by 15.3 billion yen.

Although the business environment is severe due to rising fuel prices and flagging domestic demand, international passenger demand is steadily recovering and because of JAL Group-wide contingency measures to improve revenues such as cost cuts, reviews of route network and flight frequencies, the net profit for the year was 30 billion yen.

The JAL Group proposes a dividend of four yen per share for FY2004 (subject to the annual general meeting of stockholders in June).

OUTLOOK FOR FY2005

1. Consolidated Financial Forecast for the Year Ending March 31, 2006

The current forecasts of consolidated results for the next fiscal year (FY2005) are as follows:

Units: millions of yen

FY 2005 - Year ended

March 31, 2006

Difference on FY2004 Year ended March 31, 2005

(1) Consolidated operating revenues:

2,209,000

+79,100

International passenger revenue

(720,000)

(+48,700)

Domestic passenger revenue

(685,000)

(+10,200)

International cargo revenue

(175,000)

(+3,600)

(2) Consolidated operating income

60,000

+3,800

(3) Consolidated ordinary income

29,000

(- 40,800)

(4) Consolidated net income

17,000

(- 13,000)

2. Factors in FY2005 outlook

International passenger: JAL will suspend low yield routes and reallocate resources to high yield, high growth routes, notably in Asia and China, rebuilding the network with the focus on profitability. JAL will plan and introduce new passenger services to meet customer needs. The group expects an increase in international passenger revenues of 48.7 billion yen on the year just ended.

Domestic passenger: JAL will promote customer convenience and competitiveness through e-marketing and the expansion of services such as Class J and IC check-in service. JAL expects an increase of revenue of 10.2 billion yen.

International cargo: JAL will actively expand into growth markets in Asia and China and forecasts a revenue increase of 3.6 billion yen.

Others: Fuel prices continue to rise from the average cost per barrel of US$54.00, the figure on which JAL's current 2005-2007 business plan is based, but JAL doesn't plan to change the forecast because the company expects to take further counter measures to improve revenues. These counter measures include personnel costs reductions, structural reform of international passenger business, revision of outsourcing policies, reduction of sales costs based on expansion of e-business and asset reviews and debt reduction, as announced in March in the JAL Group's current medium term business plan for the period April 1st 2005 to March 31st 2007.

JAL has no plans to post more aircraft credit memos.

In the current fiscal year due to end March 31, 2006, the JAL Group expects operating income of 60 billion yen, ordinary income of 29 billion yen and net income of 17 billion yen, with a dividend of four yen per share.

JAL GROUP-COMPARATIVE CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT FOR THE YEAR ENDED MARCH 31 2005

Units: millionsof yen

Year Ended

2005.3.31

2004.3.31

Category

JAL Group consolidated

JAL Group consolidated

Operating revenues

2,129,876

1,931,742

Operating expenses

2,073,727

1,999,387

Operating costs

(1,685,675)

(1,605,917)

Sales expenses, etc

(388,051)

(393,470)

Operating income (loss)

56,149

(-67,645)

Non-operating income

64,446

43,024

Non-operating expenses

50,790

47,317

Ordinary income (loss)

69,805

(-71,938)

Extraordinary profit

6,571

6,923

Extraordinary loss

31,710

17,134

Income before income taxes

44,666

(-82,148)

Income taxes, current

7,897

8,854

Income taxes, deferred

4,251

(-3,092)

Minority interests

2,420

709

Net income

30,096

(-88,619)

JAL GROUP: INTERNATIONAL DATA - PASSENGERS/ RPK/ ASK & LOAD FACTORS FY2004 - JAL, JAA and JALWAYS only

ROUTE

PAX NBR

FY2004

2003

%

RPK 000s

FY2004

2003

%

ASK 000s

FY2004

2003

%

Seat L/F

FY2004

2003

L/F%

Transpacific

3,397,866

107.5

26,019,557

107.0

33,637,898

99.6

77.4

107.5

Europe

1,570,847

115.3

14,608,174

115.4

20,980,997

110.0

69.6

104.9

S.E.Asia

4,478,227

135.7

14,870,895

130.2

24,624,752

117.1

60.4

111.2

Oceania

851,984

104.9

5,925,197

105.3

8,182,373

105.2

72.4

100.0

Guam & Saipan

1,076,967

126.4

2,673,266

129.0

3,869,963

111.5

69.1

115.8

Korea

1,616,502

128.6

1,616,749

132.0

2,201,660

108.4

73.4

121.8

China

1,750,251

174.9

3,270,299

177.1

5,980,454

133.6

54.7

132.5

Others

578

/

2,181

/

14,159

/

15.4

/

JAL GROUP

TOTAL

14,743,222

125.5

68,986,317

116.6

99,492,256

108.6

69.3

107.4

RPK = Revenue Passenger Kilometers (product of distance flown multiplied by revenue passengers carried)

ASK=Available Seat Kilometers (capacity)

Seat L/F = Seat Load Factor, the percentage of seats filled per flight

JAL GROUP - CONSOLIDATED TRAFFIC STATISTICS Years ended March 31, 2005 & 2004

Year ended March 31, 2005

Year ended March 31, 2004

Change % or points

INTERNATIONAL

Passenger number

14,743,222

11,745,032

125.5%

Revenue passenger Kilometers (000)

68,986,317

59,159,861

116.6%

Available seat Kilometers (000)

99,492,256

91,644,570

108.6%

Revenue seat load Factor

69.3%

64.6%

4.7 points

Revenue cargo ton Kilometers (000)

4,681,726

4,372,329

107.1%

Mail ton kilometers (000)

149,058

154,621

96.4%

Revenue ton Kilometers (000)

11,252,602

10,032,252

112.2%

Available ton kilometers (000)

16,613,543

15,481,469

107.3%

Revenue weight load factor

67.7%

64.8%

2.9 points

DOMESTIC

Passenger number

44,705,084

46,427,218

96.3%

Revenue passenger Kilometers (000)

33,367,574

34,627,625

96.4%

Available seat Kilometers (000)

52,410,183

54,206,160

96.7%

Revenue seat load factor

63.7%

63.9%

-0.2 points

Revenue cargo ton Kilometers (000)

394,566

376,283

104.9%

Mail ton kilometers (000)

77,769

78,197

99.5%

Revenue ton Kilometers (000)

2,973,756

3,050,235

97.5%

Available ton kilometers (000)

6,157,241

6,383,940

96.4%

Revenue weight l/factor

48.3%

47.8%

0.5 points

TOTAL

Passenger number

59,448,306

58,172,250

102.2%

Revenue passenger Kilometers (000)

102,353,891

93,787,486

109.1%

Available seat Kilometers (000)

151,902,439

145,850,730

104.1%

Revenue seat load factor

67.4%

64.3%

3.1 points

Revenue cargo ton Kilometers (000)

5,076,292

4,748,612

106.9%

Mail ton kilometers (000)

226,827

232,818

97.4%

Revenue ton Kilometers (000)

14,226,358

13,082,487

108.7%

Available ton Kilometers (000)

22,770,784

21,865,409

104.1%

Revenue weight l/f

62.5%

59.8%

2.7 points

CONSOLIDATED JAL GROUP AIR TRANSPORT SEGMENT REVENUE

For the year ended March 31, 2005Units: millions of yen

Year ended

March 2005 ( FY 2004)

%

March 2004 (FY 2003)

%

INTERNATONAL (1)

Passenger

671,291

39.5

549,764

35.5

Cargo

171,399

10.1

153,015

9.9

Mail

7,632

0.4

8,315

0.5

Baggage

2,487

0.1

2,149

0.1

Sub total

852,810

50.1

713,246

46.0

DOMESTIC (2)

Passenger

674,732

39.7

668,888

43.2

Cargo

30,534

1.8

30,814

2.0

Mail

9,963

0.6

11,856

0.8

Baggage

234

0.0

306

0.0

Sub total

715,464

42.1

711,866

46.0

COMBINED TOTAL (1) + (2)

1,568,275

92.2

1,425,112

92.0

Other flight operations revenues

46,473

2.7

41,925

2.7

Other operating revenues

86,619

5.1

81,785

5.3

TOTAL OPERATING

REVENUES

1,701,367

100.0

1,548,823

100.0

###

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