Press Release

Apr 30,2014

Financial / Traffic Data

JAL Group to Announce Consolidated Financial Results for Full Fiscal Year 2013

TOKYO April 30, 2014: JAL Group (JAL) today announced the consolidated financial results for the full fiscal year of 2013- the period from April 1, 2013 to March 31, 2014. For the details, please refer to attached [Consolidated Financial Results for the Year Ended March 31, 2014].

During the reporting period of consolidated financial results for the fiscal year 2013 (April 1, 2013 ~ March 31, 2014, hereinafter “reporting period”), Japan economy was on a moderate recovery track. Households increased their income and investments also increased, supported by a recovery in exports and the development of various government policies. The Japanese consumption tax hike triggered a last-minute rush in demand. On the other hand, the global economic downturn put a downward pressure on domestic business activities.

Under these economic conditions, we strived to provide unparalleled service to our customers with top priority on flight safety and raise staff awareness for profitability and improve efficiency at management in order to achieve the targets in Rolling Plan 2013 of JAL Group’s Medium Term Management Plan.

As a result of the above, during the consolidated fiscal year, total operating revenues were increased on-year by 5.7 % to 1,309.3 billion yen, total operating expenses, increased on-year by 9.5% to 1,142.5 billion yen, operating income, declined on-year by 14.6% to 166.7 billion yen, ordinary income, declined on-year by 15.2% to 157.6 billion yen, and net income for the full year was declined on-year by 3.2% to 166.2 billion yen.

(1) JAL Group Consolidated Results for the Period April 1,2013 - March 31, 2014

Unit: Billions of yen	Fiscal Year 2012 (Apr. 1, 2012 - Mar. 31, 2013)	Fiscal Year 2013 (Apr. 1, 2013 - Mar. 31, 2014)	Difference vs. prior year	% vs. prior year
Total Operating Revenues	1,238.8	1,309.3	+ 70.5	105.7
International Passenger Domestic Passenger Int. and Dom. Cargo Others	406.6 485.2 75.5 271.4	437.5 487.4 79.6 304.6	+ 30.9 + 2.1 + 4.1 + 33.2	107.6 100.5 105.5 112.3
Total Operating Expenses	1,043.5	1,142.5	+ 98.9	109.5
Operating Income	195.2	166.7	- 28.4 4.4	85.4
Operating Margin	15.8%	12.7%	- 3.0 points	-
Ordinary Income	185.8	157.6	- 28.2	84.8
Net Income	171.6	166.2	- 5.4	96.8

Figures are rounded down to the nearest tenth of a billion yen while percentages are rounded off to the first decimal place.

(2) Air Transportation Segment

International Passenger

We strived to maximize revenues by expanding Boeing 787 routes, etc., and improving our products and services such as progressively installing new cabin seats on our aircraft. As a result, international supply during the reporting period increased by 3.3% year-on-year in terms of available-seat-kilometer (ASK), demand increased by 4.0% year-on-year in terms of revenue-passenger-kilometer (RPK), the load factor (L/F) increased by 0.5 points year-on-year to 76.5%, and international passenger revenue came to 437.5 billion yen, up 7.6% from the year before.

Domestic Passenger

We implemented measures to boost demand, and adjusted aircraft capacity to meet demand according to demand trends so as to maximize revenue. As a result, domestic supply during the reporting period increased by 1.8% year-on year in terms of available-seat-kilometer (ASK), demand increased by 3.2% year-on-year in terms of revenue-passenger-kilometer (RPK), the load factor (L/F) increased by 0.9 points year-on-year to 64.0%, and domestic passenger revenue came to 487.4 billion yen, up 0.5% from the year before.

International and Domestic Cargo

In international cargo operations, in spite of limited chance for the increase in demand in this country, we have maximized our revenue by extensive revenue control management and catching the demand for the air cargo which passes Japan. The volume of international cargo transported during the report period increased by 9.7% year-on-year in terms of revenue-cargo-ton-kilometer (RCTK) in spite of very competitive environment, and international cargo revenue increased by 7.4% year-on-year to 54.2 billion yen due to intensifying competition.

In domestic cargo operations, in spite of a sluggish demand for farm products due to unseasonable weather and partial transfer to overland freight, but we strengthened relationships with customers and acquired new shipments to maximize revenue. During the reporting period, the volume of domestic cargo transported increased by 1.9% year-on-year in terms of revenue-cargo-ton-kilogram (RCTK), and domestic cargo revenue increased by 1.5% to 25.4 billion yen.

(3) JAL Group Consolidated Financial Position

	FY2012 Apr. 1, 2012 - Mar. 31, 2013	FY2013 Apr. 1, 2013 - Mar. 31, 2014	Difference
Total assets (billion yen)	1,216.6	1,340.1	+ 123.5
Net assets (billion yen)	583.1	711.0	+ 127.8
*Equity ratio ^1(%)**	46.4	51.5	+ 5.1 points
Interest-bearing debt (billion yen)	160.1	134.2	- 25.8
*Debt/Equity Ratio ^2**	0.3	0.2	- 0.1

Figures are rounded down to the nearest tenth of a billion yen while percentages are rounded off to the first decimal place.

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

JAL Group faces intensifying competition at the Tokyo metropolitan airports as a result of the dramatic increase of international flight slots at Haneda airport. Furthermore, as a unique challenge of JAL Group, we must survive the competition under the condition that fewer-than-expected international slots at Haneda airport were allocated to JAL Group. We will challenge to provide the finest products and services to deliver a refreshing and moving passenger experience on Narita routes, where we compete head-on with other airlines’ routes departing from Haneda, in addition to keep the revenue on our existing route.

Because of the escalation of fuel costs due to the weak yen may prevail and competition may intensify in both international and domestic market, total operating expense is expected to be increased by 67.5 billion yen compared to the fiscal year 2013. As a result, operating income is seen to 140.0 billion yen, decreased by 26.7 billion yen compared to the fiscal year 2013.

Unit: Billions of yen

Operating Revenues

Operating Income

Ordinary Income

Net Income

Forecast for the full fiscal year

ending March 31, 2015

1,350.0

140.0

135.0

115.0

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.

(5) Dividend Policy

Passing benefits to our shareholders is one of the most important management goals of the company. It is our basic policy to distribute benefits to our shareholders in the form of dividends, while executing capital expenditures to respond to the change in business environment, and maintain internal reserves for building a strong financial structure.

With regard to dividends for FY2013, we will pay 160 yen per share, taking into account financial results and financial conditions for the full year, and the future business environment on the whole.