• April 30, 2020

JAL Group Announces FY2019 Consolidated Financial Results

The JAL Group (JAL) today announced the consolidated financial results for FY2019.

Summarizing the business environment for FY2019

  • U.S.-China trade frictions continued to have lingering effects for the cargo business.
  • The airline was forced to cancel numerous flights during the autumn of 2019 due to natural disasters, including a set of super typhoons that affected the entire nation of Japan.
  • Although the Japanese government raised the level of consumption taxes at the beginning of October 2019, the action did not adversely affect the travel habits of local consumers.
  • Since January 2020, the impact of the novel coronavirus (COVID-19) severely affected the global economy, including the market in Japan.
  • The fluctuation of crude oil prices, which affect fuel costs and international passenger and international cargo revenues, remained stable through most of FY2019. However, in March 2020, due to the coordinated production cuts by OPEC and the global recession, oil prices have since dropped sharply. The JAL Group will continue to take strategic measures to mitigate the impact on its financial performance by utilizing hedging techniques and applying fuel surcharges on international flights, while monitoring economic trends that may affect the price of crude oil and the company`s financial performance.

Highlighting the Consolidated Financial Results for FY2019

  • Operating Revenue decreased 5.1% year over year to 1,411.2 billion yen
  • Operating Expenses decreased 0.0% year over year to 1,310.5 billion yen
  • Operating Profit decreased 42.9% year over year to 100.6 billion yen
  • Ordinary Profit decreased 38.0% year over year to 102.5 billion yen
  • Net Profit Attributable to Owners of the Parent decreased 64.6% year over year to 53.4 billion yen

Details of the consolidated financial results are shown below.

  1. 1. JAL Group Consolidated Results for the Period April 1, 2019 - March 31, 2020

Unit: Billions of yen

       Fiscal Year 2018

(4/1/2018 – 3/31/2019)

Fiscal Year 2019

(4/1/2019 – 3/31/2020)


vs. Prior Year

% vs. Prior Year

Operating Revenue



- 76.0


International Passenger

Domestic Passenger

Cargo (Inter/Dom)/Mail










- 54.4

- 13.4

- 8.3

+ 0.2





Operating Expense




- 0.5

(- 8.5)



Operating Profit




- 75.5

(- 67.4)



Operating Profit Margin




- 4.7 point

(- 4.1 point)



Ordinary Profit



- 62.7


Profit attributable to owners of parent



- 97.3


Figures have been truncated and percentages are rounded off to the first decimal place.
Number in parentheses (  ) is based on previous depreciation method.

2. Air Transportation Segment

International Operations
In international passenger operations, the Japan-outbound business demand weakened due to global economic conditions. In addition, the supply-demand situation became apparent on European and China routes due to a surplus in the industry. And, a decline in demand was observed on the Hong Kong and Korea routes due to political uncertainty. As a result, available seat kilometers (ASK) decreased by 1.1% year over year, passenger traffic decreased by 9.3% year over year, revenue passenger kilometers (RPK) decreased by 6.2% year over year, and the load factor reached 77.1%.

While these market conditions were challenging, JAL continued to strengthen its partnerships with other airlines by signing codeshare deals with Garuda Indonesia, Cathay Dragon, Xiamen Airlines, Finnair, Aircalin, Shanghai Airlines, MIAT Mongolian Airlines, Royal Brunei Airlines, and with Aeroflot. And, during the third quarter, JAL was granted antitrust immunity to start a joint business relationship with Malaysia Airlines.

Beginning in the month of January, the novel coronavirus started to spread in Asia and eventually reached a global pandemic crisis, resulting in enhanced quarantines and travel restrictions. JAL promptly reacted to the fall in market demand by reducing flight frequency and downsized aircraft on specific routes. Based on these unprecedented conditions, new services from Tokyo Haneda and Narita airport were also postponed. As a result, international passenger revenue was 476.2 billion yen, a decrease of 10.3% year over year.

In international cargo operations, Japan-outbound demand was down, partly due to U.S.-China trade frictions. During the fourth quarter of FY2019, the demand-supply situation tightened in the air cargo industry, as global airlines reduced capacity. The JAL Group proactively operated cargo flights with passenger aircraft to carry much needed medical supplies, such as face masks and protective clothing. Despite these actions, cargo revenue decreased by 8.8% year over year.

Domestic Operations
In domestic passenger operations, both leisure and business demand continued to remain strong throughout FY2019. However, due to the impact of the novel coronavirus, the government of Japan requested citizens/residents to avoid events with large crowds and to stay home for the immediate future. As such, operators of such events/theme parks have temporarily closed operations and demand for air travel decreased rapidly in the month of February and March. The JAL Group decreased its capacity, as it did in international passenger operations, to minimize the impact to its overall profit. As a result, although available seat kilometers (ASK) increased by 0.2% year over year, passenger traffic decreased by 3.1% year over year, revenue passenger kilometers (RPK) decreased by 2.9% year over year, and the load factor reached 70.3%. Based on these difficult conditions, domestic passenger revenue was 514.6 billion yen, down 2.6% year over year.

New Business Domains
In order to explore new business domains, the JAL Group is working to generate new innovative technology through the JAL Innovation Lab to develop new products, services and businesses by maximizing the use of the company`s human resources.

ZIPAIR Tokyo received an Air Operator Certificate in July and revealed the livery and interior of its aircraft in December. The carrier has since postponed its launch due to the impact of the novel coronavirus.

Together with Bell Textron Inc., JAL will look to promote the development of next-generation air mobility service using eVTOL (electric Vertical Take-Off and Landing) technology. Also, in order to establish a new type of air cargo service in local airports in Japan for regional revitalization, a trial using Unmanned Aerial Vehicle (UAV) helicopter was conducted to transport cargo.

In order to achieve SDGs, the JAL Group is jointly conducting a feasibility study on Sustainable Aviation Fuel (SAF) production and sales in Japan with Marubeni Corporation, JXTG Nippon Oil & Energy Corporation, and JGC JAPAN CORPORATION.

  1. 3. JAL Group Consolidated Financial Position


As of March 31, 2019

As of March 31, 2020


Total Assets (billion yen)



- 170.9

Net Assets (billion yen)



- 68.2

Equity Ratio (%) 1



+ 1.5 point

Interest-bearing Debt (billion yen)



+ 49.4

Debt/Equity Ratio 2



+ 0.1x

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

1. Shareholders’ equity is total net assets excluding minority interests.
2. Debt-to-equity ratio is interest-bearing debt divided by shareholders equity.

 4. Dividends Policy
The global impact of the novel coronavirus has had a significant impact on the JAL Group. The severe situation during the fourth quarter and the unforeseeable future in the next fiscal year, ending March 2021, makes cash flow management essential. Therefore, in order to secure liquidity at hand, the Company has determined to not provide a year-end dividend payment to the shareholders and have asked for their understanding during this unprecedented crisis.

As a result, the annual dividend per share for this fiscal year is 55 yen, which was paid at the end of the second quarter. When the fight with the novel coronavirus ends and when performance is determined to get back on track, the Company will strive to realize stable and continuous shareholder returns.

The forecast of dividends per share in the next fiscal year, ending March 31, 2021, will remain as undetermined as the impact of the novel coronavirus on JAL’s performance is not foreseeable at this moment.

Dividend Per Share

2nd Quarter End

Fiscal Year End



55.0 yen

55.0 yen

110.0 yen


55.0 yen

0 yen

55.0 yen

FY2020 (Forecast)




5. Consolidated Financial Forecast for FY2020 (Ending March 31, 2021)
Due to the unforeseeable circumstance with the impact of the novel coronavirus, the financial forecasts for FY2020 will remain as undetermined for the immediate future.




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