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
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.
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
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
JAL GROUP: INTERNATIONAL DATA - PASSENGERS/ RPK/ ASK & LOAD FACTORS FY2004 - JAL, JAA and JALWAYS only
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
CONSOLIDATED JAL GROUP AIR TRANSPORT SEGMENT REVENUE
For the year ended March 31, 2005Units: millions of yen