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Nov 08, 2011
JAL Group Announces Financial Results for Half-year Ended September 30, 2011 Achieved Consolidated Net Profit of 97.4 Billion Yen

 

TOKYO November 8, 2011: The JAL Group (JAL) announced today, the consolidated financial results for the period April 1 to September 30, 2011, the first half of the fiscal year ending March 31, 2012.

 

The company has strengthened its resilience against risks in the operating environment through measures implemented in the course of its restructuring last year; namely the withdrawal of unprofitable routes, continuous review of the Group’s route network and fleet, reductions in fuel expenses and other fixed costs, as well as the introduction of a new revenue management system which collectively, increased productivity of the company. Consequently, JAL is reporting an operating profit of 106.1 billion yen from 599.8 billion yen in operating revenue and a net profit of 97.4 billion yen for the first half of FY2011.

 

(1)    JAL Group Consolidated Results for the Period April 1, 2011 - September 30, 2011

FY2011 First Half

(April 1, 2011 - September 30, 2011)

Total Operating Revenue

599.8

International Passenger

Domestic Passenger

International and Domestic Cargo

Others

190.8

243.3

39.2

126.4

Total Operating Expense

493.6

Operating Income (loss)

106.1

Ordinary Income (loss)

103.1

Net Income (loss)

97.4

Unit: Billions of yen.

Figures are rounded down to the nearest tenth of a billion yen.

 

(2) Air Transportation Segment

 

International Passengers

Overall capacity, measured in available seat kilometers (ASK), decreased 28.2% versus the same period last year as a result of terminating unprofitable routes and decreasing the number of aircraft types in the fleet. On the other hand, to meet robust demands during this period on certain routes such as to Hawaii, larger aircraft were deployed on these routes and extra flights were also operated where necessary.

 

The incidental effects of the Great East Japan Earthquake on travel demand were substantial, but were mitigated by longer, staggered summer holidays in Japan this year and by the high yen rate which has encouraged more international travel. Demand, in terms of revenue passenger kilometers (RPK), fell 34.9% compared to the same period last year while the overall load factor is 7.0 percentage points down to 68.0%.

 

In the last 6 months, customers traveling across the Pacific could enjoy greater convenience as a result of JAL’s joint business agreement with oneworld® alliance partner American Airlines, and together with the buoyant summer holiday travel demands from Japan, operating revenue from the international passenger segment for the first half this fiscal year is 190.8 billion yen - contributing 31.8% to total operating revenues.

 

Domestic Passengers

Capacity decreased over the last year after operations on select routes were ceased and when fleet was downsized as part of the restructuring. Following that, JAL operated extra flights to northeast Japan between April and July this year after the Great East Japan Earthquake to facilitate transportation of goods and people to the affected areas. It also deployed larger aircraft on routes such as between Haneda and Sapporo, Fukuoka and Okinawa, when domestic travel demand recovered to pre-quake levels from July. These added to the volume of seats during this reporting period and on balance, domestic capacity is 23.0% down in terms of ASK against the first half of FY2010.

 

Working closely with municipalities and local businesses, JAL has been actively promoting domestic tourism in Japan, featuring regional attractions in its in-flight magazines and videos, in an initiative called JAPAN PROJECT. JAL is also stimulating domestic travel by extending timely discount fares, such as to encourage weekend getaways. Based on RPK, domestic travel demand during these six months to September is 22.7% under last year - declining to a lesser extent than capacity and thus resulting in a 0.2 percentage point increase in load factor to 62.5%.

 

International and domestic Cargo

Alongside efforts to stimulate demand for air cargo transportation between international gateways and local regions after the internationalization of Haneda airport, JAL has also been carrying increased amounts of automotive parts and other cargo goods related to the Great East Japan Earthquake. Cargo capacity on JAL in terms of revenue cargo ton-kilometer (RCTK) is 52.2% down versus last year, bringing in operating revenues of 27.0 billion yen.

 

Domestically, JAL endeavored to capture business brought about by a shift in demand for land and sea freight services to air freight after the earthquake, and also the stronger demand for air transport of perishable goods particularly in Hokkaido, Kyushu and Okinawa since July this year. Meanwhile, capacity was lowered by 17.4% versus the previous year, after a significant scale-down in business operations. Revenue from this sector is 12.1 billion yen.

 

(3) JAL Group Consolidated Financial Position

FY2011 First Half

Apr 1 - Sep 30, 2011

FY2010

As of Mar 31, 2011

Difference

Total assets (billion yen)

1,229.9

1,206.5

23.4

Net assets (billion yen)

309.1

218.2

90.9

Capital adequacy ratio *1(%)

 

23.3

16.5

6.8 points

Interest-bearing debt *2(billion yen)

437.6

484.0

-463

Debt/Equity Ratio *3

 

1.5

2.4

-0.9

Figures are rounded down to the nearest tenth of a billion yen.

Notes:

1.Shareholders equity is total net assets excluding minority interests

2.Debt-to-equity ratio is interest-bearing debt divided by shareholders equity

 

(4) Forecast of JAL Group Consolidated Financial Results

 

While results up to the second quarter of this fiscal year have generally been stable, the business outlook for the third and fourth quarters is unclear in view of the volatile economic situation in Europe related to the debt issues in Greece, as well as the possible lingering effects of the flooding in Thailand. Amidst these circumstances, JAL forecasts the following financial results for the full fiscal year ending March 31, 2012.

 

(Billions of yen)

Operating Revenue

Operating Income

Ordinary Income

Net Income

Forecast for the full fiscal year ending March 31, 2012

1,150

140

130

120

 

END

 

 

  20111108 - JAL Announces Financial Results for First Half FY2011_FINAL.pdf

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