Press Release

Tokyo May 2, 2007: JAL Group today announced a revision of its consolidated financial forecast for FY2006, the year ended March 31, 2007, reflecting the trends of recent performance.

Today's revised forecast supersedes the Group's last forecast announced on February 6, 2007 when the airline issued its financial results for the third quarter of FY2006 (October - December 2006 inclusive).

Revision of JAL Group Forecast Consolidated Financial Results for FY2006（from April 1, 2006 to March 31,2007）

*All figures rounded down to the nearest tenth of a billion yen.

Reasons for Revision

Announced on February 6 2007, the FY2007- FY2010 medium-term corporate revival plan, effective for the period April 1 2007 through to March 31 2011, outlines JAL's intention of rebuilding the group's business foundation and realizing continuous stable profits, whilst emphasizing safety and customer satisfaction.

Prior to April 1 2007, the official start date of the new four-year corporate plan, the JAL Group decided to forge ahead and start work on realizing its objectives. As a result, the company has revised its forecast for FY2006 due to a forecast recovery in profitability primarily in its air transport business segment, and due to progress in the implementation of group-wide cost reduction measures.

Compared to the previous forecast, FY2006 operating revenue is now estimated at 2,301.9 billion yen, up 33.9 billion yen or 1.5%; operating income is estimated at 22.9 billion yen, up by 9.9 billion yen or 76.2%; and ordinary income estimated at 20.5 billion yen, up 20.0 billion yen or 4,000%.

The airline group is carrying out business restructuring through aircraft downsizing and shifting to high profit routes. It is strengthening product competitiveness through for example, the introduction of First Class on domestic flights, and Premium Economy Class on international flights later this year. Thereby the airline will make maximum opportunity of the business changes that will result from the internationalization and expansion of Tokyo's Haneda Airport from and after FY2009, and increase of airport slot capacity at Narita.

JAL is also implementing large scale cost reductions through personnel reductions and other measures and concentrating resources to the core air transport business segment in order to achieve sustainable growth.

JAL has revised its net income forecast for FY2006 from 3 billion yen down to minus 16.2 billion yen, primarily due to deferred tax asset adjustments to its balance sheet, and an extraordinary loss resulting from a special early retirement program JAL launched in March 2007.

JAL has re-evaluated its deferred tax management strategy and decided to remove 44.7 billion yen of deferred tax assets from the FY2006 balance sheet. The FY2006 forecast indicates that the Group is steadily improving in terms of operating profit and ordinary income estimates. However, over the past years the company has been negatively affected by such external factors as SARS, an unprecedented rise in the cost of fuel, and 9/11. As a result, when estimating deferred tax assets, the company will be more prudent in its estimate of future taxable income.

This is in addition to the removal of 9.7 billion yen of deferred tax assets from the FY2006 balance sheet resulting from a one-off reduction in the company's pension costs, already included in the previous forecast.

An adjustment to extraordinary income must also be made to account for an extraordinary loss of 6.0 billion yen resulting from payment of retirement allowances for a special early retirement program JAL launched in March 2007.

Furthermore, JAL Group forecasts equity of 311 billion yen and equity ratio of 14.9% for FY2006.

Journalists with media enquiries, please contact the press office: stephen.pearlman@jal.com / Tel: 81-3-5460-3109 www.jal.com/en/corporate/