Press Release

The JAL Group today announced the consolidated financial results for the first quarter of FY2021.

1) JAL Group Consolidated results for the Period April 1, 2021 – June 30, 2021

The spread of COVID-19 has been active even in the fiscal year 2021, and worldwide restrictions on international travel and restricted entrance to Japan have not been lifted yet. Also, declarations of a state of emergency
and strict measures to prevent COVID-19 infection have been imposed repeatedly in Japan. As a result,
he international and domestic passenger demands still remain at a low level. Contrary, in cargo operations,
most of airlines reduced their cargo capacity by cancellation of flights and the demand-supply situation became
tightened and increased its revenue. Amid this business environment, securing safety for our passengers and
employees as the first priority, the JAL group has been seeking to fulfill its responsibilities by sustaining both
international and domestic air transport network for passengers who needs to travel.

The revenue increased by 74.1% year on year to 133.0 billion yen, the operating expense increased by 4.7 %
year on year to 215.4 billion yen, the loss/earning before financing and income tax (hereinafter referred as
“EBIT”) was loss of 82.6 billion yen (EBIT loss of 131.0 billion yen in the same period in the previous year).
The loss attributable to owners of the parent was 57.9 billion yen (the loss attributable to owners of the parent
93.7 billion yen in the same period in the previous year).

The number of passengers on international routes was 151 thousand, (345.9% up from the same period in the previous year) and international passenger revenue was 11.2 billion yen, (315.0% up from the same period in
the previous year). The number of passengers on domestic routes was 2,708 thousand, (120% up from the
same period in the previous year) and domestic passenger revenue was 38.0 billion yen, (100.8% up from the
same period in the previous year). Cargo mail revenue was 47.6 billion yen, an increase of 79.3% compared to the same period in the previous year.

Details of the consolidated financial results are as follows:

2) First quarter and recent initiatives

Safety and Secure initiatives

-Amid this difficult business environment, we have prioritized “Safety” and “Comfort” with various infection
prevention measures for passengers and employees. Moreover, we are the first Japanese airline to start
antiviral and antibacterial coating in passenger cabin.
-We enhanced hygiene and contactless air travel by extending JAL SMART AIRPORT to Sapporo.
-We are developing safety and comfort measures for passengers by arranging PCR testing for domestic tour
passengers or offering complimentary insurance coverage for those that test positive during their travels.

LCC Business

-We used some of the fund raised through the public offerings in November 2020 to infuse capital to
SPRINGJAPAN and Jetstar Japan. SPRING JAPAN became JAL’s consolidated subsidiary from the First
Quarter Period. Together with ZIPAIR, three different Narita-based LCCs will constitute a global network to
capture rapidly recovering post-COVID travel demand.

ESG Management to achieve SDGs

-Key initiatives and FY2025 targets regarding 4 priority areas and 22 issues through JAL’s business
activities are disclosed on JAL’s website. Along with TCFD’s recommendations, we have also disclosed climate change related information on JAL’s website. The Sustainability Promotion Council chaired by the President
has been established and we will further promote ESG management by conducting periodically report and
discussion to the board to advance those initiatives.

Expense

-In response to the decline in demand caused by the spread of the new coronavirus, we made expeditious
supply adjustments to minimize our operating cost, together with fixed cost restructuring by in-sourcing
operations instead of outsourcing, reducing IT expenditure and reducing personnel cost including executives’
salaries and employees’ bonus cut
-Actual fixed cost for FY21Q1 was 117.4 billion yen. It is under control toward 500 billion yen level per annum.
-Actual fixed cost is just 55% of the total operating expense, which shows resilience to a drastically-
changing situation.

Initiatives for liquidity at hand, Liquidity and cash burn

-In June 2021, we financed 30 billion yen through issuance of straight bond and 24.4 billion yen through bank
loans, resulting in 357 billion yen of cash at hand at the end of June. Together with the unused credit line of 300 billion yen, we have secured a sufficient amount of liquidity at hand that is more than 650 billion yen.
-For cash burn, we were able to reduce the outflow amount as 10 to 15 billion yen per month despite a
declaration of state of emergency. Cash burn in and after the second quarter is expected to decline to about
5 billion yen per month. In addition to the strong performance of international cargo, we are also seeing upward trend in deposits from ticketing for domestic flights, and we are moving in the direction of eliminating the cash
burn.

3) JAL Group Summary of Consolidated Statement of Financial Position and Cash Flow

-Secured 42.4% of Equity Ratio in the difficult situations
-Sufficient long-term fund has been secured for 573.2 billion yen of Interest-bearing debts and 74.3 billion yen
of repayment within one year including lease payment, D/E Ratio still remains low at 0.6x
-Operating cash outflow greatly improved year on year from 130.2 billion yen to 45.8 billion yen

4) Explanations of Forecast of Consolidated Financial Results

At present, it is difficult to reasonably foresee the recovery of international passenger and domestic
passenger demand, thus we are not able to provide our performance forecast for the fiscal year ending
March 2022. We will disclose our forecast as soon as we are able to foresee, to certain extent, a recovery of
passenger demand as COVID-19 situations in various countries including Japan settle and vaccination
advances in those countries.

5) Dividends

As the spread of COVID-19 still continued, EBIT decreased to a loss of 82.6 billion yen and when recovery of
passenger demand starts is not clear yet. Considering the above, we determined to pursue liquidity at hand and financial robustness as our first priority. Therefore, we regret that we have determined not to pay interim
dividends. We sincerely apologize to our shareholders and investors, and would like to ask for their
understanding amid the very difficult situation that we are currently in.
For the forecast of the year-end dividends per share and the total dividends per share for the fiscal year
ending March 2022, it will be undetermined because of the current unforeseeable situations and we will
disclose the forecast as soon as the situation becomes foreseeable.