Press Release

FY 2005 (03/31/2006)

Actual results

FY 2005

(03/31/2006)

targets announced in medium-term business plan*

FY 2004 (03/31/2005)

Actual results

Difference between FY 2004 and FY 2005

Total operating revenues

2,199,300

2,195,000

2,129,800

69,500

International passenger

690,200

692,000

671,200

18,900

Domestic passenger

659,900

662,000

674,700

(14,700)

International cargo

180,500

181,000

171,300

9,100

Other

668,500

660,000

612,400

56,100

Total operating expenses

2,226,200

2,229,000

2,073,700

152,400

Operating income (loss)

(26,800)

(34,000)

56,100

(82,900)

Ordinary income (loss)

(41,600)

(57,000)

69,800

(111,400)

Net income (loss)

(47,200)

(47,000)

30,000

(77,300)

Operating revenues

International passenger

Although passenger demand was steady for flights to the United States, Korea and Taiwan, passenger demand on routes to Europe and Southeast Asia was slightly below that in the previous fiscal year. Passenger demand on Oceania routes was also stagnant. The effects of anti-Japanese demonstrations in China continued to linger on routes to China, mainly among tourists. As a result, passenger demand (as measured by revenue passenger-kilometer) decreased 2.2% compared to the previous fiscal year. Revenue increased 2.8% to 690.2 billion for the fiscal year ended March 31, 2006 compared to the previous fiscal year, and passenger yield increased 5.2% year-on-year primarily due to ticket price increases and fuel surcharges. Available seating capacity (as measured by available seat-kilometers) decreased 2.3% from the previous fiscal year as a result of several route restructuring measures, including reduction or suspension of less profitable routes, such as flights to certain resort destinations, and increase in flights to primarily business destinations.

Domestic passenger

The number of individual passengers failed to grow, mainly due to safety-related occurrences, and the growth in the number of group passengers proved insufficient to offset the decline in individual passenger traffic. As a result, passenger demand (as measured by revenue passenger-kilometer) decreased 1.4% from the previous fiscal year. As passenger yield remained stable, revenues fell 2.2% year-on-year to 659.9 billion for the fiscal year ended March 31, 2006. Available seating capacity (as measured by available seat-kilometers) decreased 1.9% from the previous fiscal year.

International cargo

Although overall demand recovered starting in the fall of 2005 as a result of increased shipments of flat-screen televisions, semi-conductor products and auto parts, demand (as measured by revenue cargo ton-kilometer) decreased 3.0% from the previous fiscal year, when demand had been particularly strong. Cargo yield increased 8.6% compared to the previous year, and revenues increased 5.4% to 180.5 billion for the fiscal year ended March 31, 2006 primarily due to fuel surcharges.

Operating expenses

Aircraft fuel

The average market price for aircraft fuel increased significantly from $49.8 per barrel (Singapore Kerosene) for the previous fiscal year to $72.1 per barrel for the fiscal year ended March 31, 2006. As a result, our fuel cost increased 88.2 billion compared to that of the previous fiscal year.

Personnel

We had recorded a 52.9 billion decrease in retirement benefit cost in the previous fiscal year in connection with certain changes we made to our retirement benefit plan. Due to such event in the previous fiscal year, personnel cost increased 33.3 billion compared to the previous fiscal year.

Foreign exchange

The average yen-to-dollar exchange rate for the fiscal year ended March 31, 2006 was 112.1 to $1.00 compared to the previous fiscal year's average rate of 107.7 to $1.00. This exchange rate difference had a 6.0 billion negative impact on our operating income (loss).

FY 2006

(03/31/2007)

Difference vs. FY 2005

Total operating revenues

2,301,000

101,600

International passenger

725,000

34,700

Domestic passenger

703,000

43,000

International cargo

　　Other

198,000

675,000

17,400

6,400

Operating income

17,000

43,800

Ordinary income

500

42,100

Net income

3,000

50,200

International passenger

During fiscal 2006, which is the first year of the business foundation rebuilding phase (FY 2006 to FY 2008) of our medium-term business plan, we will endeavor to improve profitability by streamlining less profitable routes, renewing and restructuring our fleet, and expanding the operation of JALways. With respect to our expected membership in oneworld, in order to enhance customer convenience, we plan to gradually launch new programs, such as an expanded frequent flyer mileage program, as they become available through the alliance after our expected formal invitation. (Our full participation in all programs of the alliance is expected in FY 2007.)

Domestic passenger

We will aim to further enhance customer convenience and comfort by developing safe, comfortable and convenient products and services, such as expanding Class J seating, introducing smaller-sized aircraft and strengthening our e-marketing initiatives. We also intend to introduce new aircraft, such as Boeing 737-800s, at an accelerated pace in order to improve our competitiveness.

International cargo

We will endeavor to secure stable profitability, rebuild an efficient operational structure, and seek to expand the scope of our operations. We also plan to better serve the demands of the Japanese outbound international cargo market, which is our most important market, and aggressively enter into potential growth markets, such as the Chinese market, by expanding and strengthening our strategic alliances with freight forwarders and by other means.

(Cautionary Note)

This document has been prepared as a summary for background information purposes only. Because it is a summary, it does not contain all of the information that may be important to you. Please see other disclosure and public filings we made or will make for detailed information regarding our results of operations. Certain statements made in this document, including some management strategies and targets, may contain forward-looking statements which reflect management's views and assumptions. We may not be successful in implementing our business strategies, and management may fail to achieve its targets. The management targets and other forward-looking statements involve current assumptions of future events as well as risks and uncertainties that could significantly affect expected results, including without limitations adverse economic or political conditions in Japan or other countries; increased jet fuel prices; negative changes in foreign exchange rates; terrorist attacks and military conflicts, and health epidemics. Please see other disclosure and public filings we made or will make for additional information regarding the risks in our businesses. To the extent this document contains such forward-looking statements, we have no obligation or intent to update them unless required by law.

Year Ended

2006.3.31

2005.3.31

Category

JAL Group consolidated

JAL Group consolidated

Operating revenues

2,199,385

2,129,876

Operating expenses

2,226,220

2,073,727

Operating costs

1,839,190

1,685,675

Sales expenses, etc

387,029

388,051

Operating income (loss)

- 26,834

56,149

Non-operating income

26,378

64,446

Non-operating expenses

41,152

50,790

Ordinary income (loss)

- 41,608

69,805

Extraordinary profit

30,471

6,571

Extraordinary loss

35,303

31,710

Income before income taxes

- 46,440

44,666

Income taxes, current

8,419

7,897

Income taxes, deferred

- 9,966

4,251

Minority interests

2,350

2,420

Net income

- 47,243

30,096

ROUTE

PAX NBR

FY2005

2004

%

RPK 000s

FY2005

2004

%

ASK 000s

FY2005

2004

%

Seat L/F

FY2005

2004

L/F%

Transpacific

3,352,722

98.7

25,877,543

99.5

33,409,435

99.3

77.5

99.5

Europe

1,545,192

98.4

14,364,561

98.3

20,605,094

98.2

69.7

98.3

S.E.Asia

4,340,318

96.9

14,650,728

98.5

23,967,439

97.3

61.1

98.5

Oceania

806,125

94.6

5,608,052

94.6

7,750,500

94.7

72.4

94.6

Guam& Saipan

874,111

81.2

2,188,560

81.9

2,965,429

76.6

73.8

81.9

Korea

1,652,036

102.2

1,695,482

104.9

2,531,520

115.0

67.0

104.9

China

1,616,734

92.4

3,048,511

93.2

5,943,924

99.4

51.3

93.2

Others

388

67.1

1,176

53.9

1,436

10.1

81.9

53.9

JAL GROUP

TOTAL

14,187,626

96.2

67,434,613

97.8

97,174,777

97.7

69.4

97.8

FY2005

Year ended March 31, 2006

FY2004

Year ended March 31, 2005

Change % or points

INTERNATIONAL

Passenger number

14,187,626

14,743,222

96.2%

Revenue passenger Kilometers (000)

67,434,613

68,986,317

97.8%

Available seat Kilometers (000)

97,174,777

99,492,256

97.7%

Revenue seat load Factor

69.4%

69.3%

0.1 points

Revenue cargo ton Kilometers (000)

4,541,293

4,681,726

97.0%

Mail ton kilometers (000)

161,690

149,058

108.5%

Revenue ton Kilometers (000)

10,954,502

11,252,602

97.4%

Available ton kilometers (000)

16,414,876

16,613,543

98.8%

Revenue weight load factor

66.7%

67.7%

-1.0 points

DOMESTIC

Passenger number

43,848,755

44,705,084

98.1%

Revenue passenger Kilometers (000)

32,910,535

33,367,574

98.6%

Available seat Kilometers (000)

51,415,813

52,410,183

98.1%

Revenue seat load factor

64.0%

63.7%

0.3 points

Revenue cargo ton Kilometers (000)

388,443

394,566

98.4%

Mail ton kilometers (000)

85,519

77,769

110.0%

Revenue ton Kilometers (000)

2,938,796

2,973,756

98.8%

Available ton kilometers (000)

6,034,514

6,157,241

98.0%

Revenue weight l/factor

48.7%

48.3%

0.4 points

TOTAL

Passenger number

58,036,381

59,448,306

97.6%

Revenue passenger Kilometers (000)

100,345,148

102,353,891

98.0%

Available seat Kilometers (000)

148,590,590

151,902,439

97.8%

Revenue seat load factor

67.5%

67.4%

0.1 points

Revenue cargo ton Kilometers (000)

4,929,736

5,076,292

97.1%

Mail ton kilometers (000)

247,209

226,827

109.0%

Revenue ton Kilometers (000)

13,893,298

14,226,358

97.7%

Available ton Kilometers (000)

22,449,390

22,770,784

98.6%

Revenue weight l/f

61.9%

62.5%

-0.6 points

Year ended

March 2006 ( FY 2005)

%

March 2005 (FY 2004)

%

INTERNATIONAL (1)

Passenger

690,226

39.9%

671,291

39.5

Cargo

180,573

10.4%

171,399

10.1

Mail

8,441

0.5%

7,632

0.4

Baggage

2,270

0.1%

2,487

0.1

Sub total

881,513

50.9%

852,810

50.1

DOMESTIC(2)

Passenger

659,998

38.1%

674,732

39.7

Cargo

29,440

1.7%

30,534

1.8

Mail

10,819

0.6%

9,963

0.6

Baggage

265

0.0%

234

0.0

Sub total

700,523

40.4%

715,464

42.1

COMBINED TOTAL (1) + (2)

1,582,037

91.3%

1,568,275

92.2

Other flight operations revenues

54,935

3.2%

46,473

2.7

Other operating revenues

96,010

5.5%

86,619

5.1

TOTAL OPERATING

REVENUES

1,732,983

100.0%

1,701,367

100.0