Press Release

The JAL Group today announced the consolidated financial results for the Period April 1, 2021-March 31,2022.

1． JAL Group Consolidated results
This fiscal year (April 1, 2021 to March 31, 2022) was a tough year again for the JAL Group due to the
prolonged COVID infection. As the infection continued, we grappled to maintain our domestic and international route network while implementing hygiene and contactless measures to ensure safety and security for
passengers that are our first priority. Facing a delayed recovery of passenger demand, we aimed for early
recovery from the COVID situation by implementing fundamental cost reduction measures and maximizing
cargo revenue to improve profitability, together with public support from the Japanese government such as
exemption of landing fees and jet fuel tax or subsidies for employment to assist the airline industry.

The revenue for the consolidated fiscal year increased 41.9% year over year to 682.7 billion yen, the operating expenses increased 6.2% year over year to 940.2 billion yen, the loss/earning before financing and income tax (hereinafter referred as “EBIT”) was loss of 239.4 billion yen (EBIT loss of 398.3 billion yen in the previous
year). The loss attributable to owners of the parent was 177.5 billion yen (the loss attributable to owners of the parent 286.6 billion yen in the previous year). Our efforts to reduce costs have been steadily showing results,
and the actual fixed cost is 465.7 billion yen, which is a reduction of 34.3 billion yen from the initial target.

We will work together to fulfill our mission as a public transportation provider to enable our valued passengers
to use our service with comfort, as the COVID infection settles and air transport demand solidly recovers in and after 2022.

Details of the consolidated financial results are as follows (Including LCC)

Major Operating Expense Items       

2． Summary of Consolidated Statement Financial Position and Cash Flow

-With 350 billion yen raised by the hybrid financing in the third quarter, despite the difficult performance, both Equity Ratio is 41.1% in credit rating evaluation basis and the Net D/E Ratio is 0.3x, keeping a healthy level.
-Cash and deposits on hand at the end of March amounted to 494.2 billion yen. Together with the unused credit line of 300.0 billion yen, we secured sufficient liquidity on hand.

3． Initiatives in each business domain

【Full Service Carrier business domain.】
-For International Passenger Business operations, border restrictions in many countries
including Japan still continued, we actively captured base demand including transit demand between North America and Southeast Asia, as well as demand from people returning to
Japan or posted overseas.
-For Domestic Passenger Business operations, to improve our service, we introduced
“Award Anytime Tickets” for domestic flights that enables passengers to book reward tickets even during a peak season. Also, we announced a renewal of our domestic fare system
applicable to tickets used from April 12, 2023.
-For International and Domestic Cargo operations, amid the reduction of passenger flights
for overall international routes, we actively operated cargo flights using our own passenger
aircrafts as well as chartering freighters to increase capacity to capture the strong cargo
demand.
-Because of the Russia-Ukraine military actions, we have suspended flights to/from Russia
and flying over Russia, but we are striving to secure alternative routes to meet the
passenger and cargo demand between Japan and Europe.
【LCC operations domain】
-Our mid- and long-haul international low-cost carrier, ZIPAIR Tokyo (ZIPAIR), started the
first-LCC transpacific flights to Los Angels to expand its network for recovering international passenger demand. Spring Japan became our subsidiary in June 2021. Together with
Jetstar Japan, the three low cost carriers will establish useful network based at Narita Airport to prepare for solid recovery of air passenger demand.
【Non-aviation business domain】
-We completed a joint tender offer with Sojitz Corporation to make JALUX a consolidated subsidiary by the end of this fiscal year.
-We announced to start cargo freighter operations together with YAMATO HOLDINGS co.,
ltd from April 2024 toward the formation of D to B/C markets, creation of new businesses and revitalization of regional industries.
【For Safety and Comfort measures】
-A passenger suffered fracture due to a sudden turbulence on February 2022, and a cabin
crew member suffered fracture on March 2022.
These incidents were recorded as aircraft accidents by the Ministry of Land, Infrastructure,
Transport and Tourism. We have taken these incidents seriously, and work on preventive
measures “zero aircraft accident and zero serious incident,” for the safety of our passengers
and employees. We will never cease our efforts to achieve our management goal of air
safety.
-In order to provide safe, secure, and more convenient air travel for the COVID pandemic,
we have introduced “JAL SMART AIRPORT” at Haneda, New Chitose, Itami, Naha and
Fukuoka airports for hygiene and contactless air travel overall.
-JAL introduced in April 2022 “JAL SMART SECURITY” on domestic routes at Haneda
Airport for enhanced, expedited and improved-hygiene security check with ultraviolet rays.
【Promoting ESG Management to Achieve the SDGs】
-Amid the prolonged difficult times by COVID, we steadily replaced our aircraft with fuel
efficient aircraft such as Boeing 787 and Airbus 350 through the issuance of the world’s first
transition bonds in the aviation industry, and our domestic large-scale aircraft replacement
with A350s has been almost completed.
-We have announced in March 2022 to jointly purchase SAF from Gevo Inc (USA). For 
another pillar, SAF, we have already announced to purchase SAF from Aemetis. Inc (USA)
jointly with Oneworld alliance members and together with Fulcrum BioEnergy.Inc(USA),
which has been on assignment since 2018,we worked to expand our overseas SAF sourcing sources.  For domestic SAF initiatives, the two carriers have established a promotional
organization called “ACT FOR SKY” for domestic production and widespread use of SAF
with major partners.
-JAL also renewed its CO2 reduction program for cooperate accounts customers that enable those customers to visualize their scope3 emissions and offset those emissions with carbon 
trading.
-For gender equality we have raised the proportion of women in management roles in JAL
group to 21.9%, 2.4 points up from the previous year.
Also, we appointed executive officers this fiscal year in accordance with our diversity policy.

4. Future Outlook 
In spite of the increasingly uncertain business environment surrounding the JAL Group such as the prolonged COVID effects, the Russia-Ukraine situation, material cost increase
including fuel price hike, we believe the COVID infection is heading toward settlement. We
expect domestic and international passenger demand will trend up. Though the trend is not
clear or settled yet, domestic passenger demand is expected to recover up to around 90% of the pre-COVID level (note), international passenger demand is expected to recover only to
around 45% of the pre-COVID level (note). The international cargo demand is expected to
remain strong this fiscal year again. For the non-aviation business, we will expand business with JAL Group’s customer base and enhance our daily-life/ life-of-stage business and
mileage business through our recently-acquired JALUX as a core company. For expenses,
we will minimize the increasing material cost especially fuel cost by offsetting through fuel
surcharge and hedging transactions. Also, we will continue efficiency improvement and cost-cutting efforts, especially for fixed costs. Considering the above factors, we forecast the
financial performance of this fiscal year ending March 2023 as 1,390 billion yen of Revenue, 80 billion yen of EBIT and 45 billion yen of Profit Attributable to Owner of Parents.
These calculations were made based on the assumptions that the exchange rate is 120 yen to one US dollar, and indices for fuel cost is as follows; the market price for Singapore 
kerosene cost is 120 US dollars per barrel.
(Note) Compared with the figures in fiscal year 2019 but the 2019 January to March passenger numbers are the figures
based on the performance forecasts disclosed upon the FY2019 third quarter financial report.

(1).Other Revenue = Travel Agency, Mileage, Ground Handling  etc. (2) Others = Gain or Loss on Sales of Aircraft, Other
Revenue, Share of Profit or Loss of Investment and Income/Expenses from Investment

5． Dividend for the Fiscal Years ending March 2022 and March 2023
The prolonged infection delayed passenger demand recovery and JAL regrettably recorded significant losses
for this fiscal year ending March 2022. Considering the surrounding business environment such as the
apparent geopolitical risk and the surge of fuel price, we believe securing liquidity at hand to enhance our risk
resilience and financial foundation is the best for JAL at this moment, thus we have determined not to provide
year-end dividends in order to secure liquidity at hand. We regret that we cannot pay dividends to our
shareholders, but we would like to ask for their understanding in this situation.
In terms of dividends for the fiscal year ending March 2023, we have to keep a close eye on the fuel price hike
risk and re-spread of infection, our performance recovery and cash flow improvement is promising if there are
no significant event risks. Therefore, we will aim for dividends payment for the fiscal year ending March 2023.
However, for the interim and year-end dividends forecast, we will provide our forecast when our performance
recovery becomes more steadfast and foreseeable.