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Aug 02, 2012
JAL Group Announces Consolidated Financial Results for First Quarter of Fiscal Year 2012

TOKYO August 2, 2012: The JAL Group (JAL) announced today, the consolidated financial results for the first quarter of fiscal year 2012 (year ending March 31, 2013).

 

During the reporting period of April 1 to June 30, 2012, JAL continued to uphold flight safety as the utmost priority and strived to deliver unparalleled services to customers, providing them with the convenience of a full-service airline and a comprehensive international and domestic network. At the same time, steps were taken to increase profit awareness of all JAL Group employees through the newly implemented divisional profitability management system. JAL further exerted efforts to reduce cost by improving productivity, and to maintain growth in profits by flexibly and adequately matching capacity with demand.

 

Consequently, compared to the last reporting period, total consolidated operating revenue in the first quarter of FY2012 increased 12.5% to 286.7 billion yen, operating expenses increased 7.4% to 255.3 billion yen, operating income increased 83.1% to 31.4 billion yen, and ordinary income increased 93.2% to 30.7 billion yen, resulting in the increase by 111.2% to 26.9 billion yen in net income.

 

(1)JAL Group Consolidated Results for the Period April 1 - June 30, 2012

Unit: Billions of yen

1st Quarter FY2011

(April 1 - June 30, 2011)

1st Quarter FY2012

(April 1 - June 30, 2012)

Difference

vs. prior year

% vs. prior year

Total Operating Revenue

254.9

286.7

+31.8

112.5%

International Passenger

Domestic Passenger

Int. and Dom. Cargo

Others

78.8

100.4

19.5

56.0

95.9

108.2

19.1

63.4

+17.0

+7.8

-0.4

+7.3

121.6%

107.8%

97.8%

113.1%

Total Operating Expense

237.7

255.3

+17.5

107.4%

Operating Income

17.1

31.4

+14.2

183.1%

Operating Margin

6.7%

11.0%

+4.2%

-

Ordinary Income

15.9

30.7

+14.8

193.2%

Net Income

12.7

26.9

+14.1

211.2%

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

 

(2) Air Transportation Segment

International Passenger

JAL took delivery of the revolutionary 787 Dreamliner this past spring, and in April, used it to launch a new nonstop service between Tokyo (Narita) and Boston. The mid-sized Dreamliner was also introduced on several existing international routes to adjust capacity with demand and to improve product appeal. Additionally, JAL operated nonstop charter flights to offline airports such as Barcelona, Athens, Rome, Madrid and Venice, in response to robust travel demand prompted by the strong yen. As such, international passenger capacity in terms of available seat kilometer (ASK) rose 6.6% versus previous year.

 

Leveraging the joint business with oneworld alliance partner American Airlines, the usage of joint fares was expanded to more routes between Asia and North America (via Japan) which helped boost demand and revenue. While travel demand from Korea and Hong Kong have not yet fully recovered from post-quake effects, the robust demand from outbound-Japan leisure travelers driven by the strong yen yielded a greater influence on overall international demand, which increased 28% year-on-year, measured by revenue passenger kilometer (RPK). The load factor was consequently pushed up by 12.3 percentage points to 73.4%.

 

On the service front, JAL continued to seek innovative improvements to bring customers a refreshing travel experience. For instance, the world’s first in-flight electronic comic book reader, SKY MANGA, was introduced onboard JAL’s 787 Dreamliner this spring, offering customers 31 titles and 91 comic books to choose from. New in-flight meal options such as AIR MISDO and AIR YOSHINOYA were also created in collaboration with popular and well-established food companies, delighting customers with tasty, familiar treats onboard. Revenue from international passenger operations in the first quarter on a consolidated basis increased year-on-year by 21.6% to 95.9 billion yen.

 

Domestic Passenger

Domestically, service between Fukuoka and Hanamaki was reinstated and flight frequencies between high-demand routes such as Haneda=Kita-Kyushu, Kumamoto, and Okinawa, and between Itami=Aomori and Sapporo=Memanbetsu were increased. Larger aircraft were also assigned to serve between Haneda=Sapporo, Asahikawa, Komatsu, Tokushima and Oita with convenient flight schedules, to strike an optimal demand-capacity balance. As such, capacity in terms of ASK, grew 11.1% from the same period last year.

 

To boost domestic tourism and travel demand, JAL has been promoting local regions through its in-flight meals and magazines every month as part of the JAPAN PROJECT. Coupled with the effects from post-quake recovery, demand rose 18% in terms of RPK compared to last year - more than the increase in capacity, thus resulting in a 3.5 percentage point higher load factor of 59.6%.

 

Other efforts included improving the online functions of JAL’s websites to support corporate customers and introducing another advanced purchase product similar to the Super Sakitoku and Sakitoku fares allowing customers to book up to 55 days prior to departure, in addition to 45 or 28 days, to enjoy greater discounts.Consequently, domestic passenger revenue increased year-on-year by 7.8% to 108.2 billion yen.

 

International and Domestic Cargo

The overall demand for international cargo operations was stagnant due in part to the European economy. However, JAL was able to maximize revenue through optimal use of cargo compartments on passenger aircraft. As part of the measures, JAL improved international and domestic flight connection services at Tokyo, responded to the demand for transportation of perishables from the U.S., and improved temperature controlled transport services of high value freight shipments such as pharmaceuticals.

 

Domestically, JAL strengthened relationships with customers and promoted air transport of perishable goods all across Japan to acquire a stable and steady cargo demand. As a result of these efforts, international and domestic cargo transported in the reporting period on a consolidated basis measured in revenue-cargo-ton-kilometer (RCTK) increased 2.5% from the same period a year earlier, but declined in revenue by 0.4 billion yen to 19.1 billion yen

 

(3) JAL Group Consolidated Financial Position

FY2011

Year ended March 2012

1st Quarter FY2012

Apr 1 - Jun 3, 2011

Difference

Total assets (billion yen)

1,087.6

1,106.4

+18.8

Net assets (billion yen)

413.8

419.7

+5.9

Capital ratio *1(%)

 

35.7

36.4

+0.6 points

Interest-bearing debt (billion yen)

208.4

196.4

-12.0

Debt/Equity Ratio *2

 

0.5

0.5

- 0.0

Figures are rounded down to the nearest tenth of a billion yen while percentage points are rounded up to the nearest tenth.

Note:

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

There is no revision in the forecast of consolidated financial results for the year ending on March 31, 2013 announced on May 14, 2012. It remains as follows:

Unit: Billions of yen

Operating Revenue

Operating Income

Ordinary Income

Net Income

Forecast for the full fiscal year ending March 31, 2013

1,220

150

140

130

Note: The forecast above represents estimates of future results based on the information available at the time of release and the company’s reasonable judgment on this information. They are inherently subject to risks which may result in a divergence in the actual result from the forecasts and estimates contained herein.

 

 

END

 

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