Press Release

The JAL Group today announced the consolidated financial results for First Quarter Ending March,
Period April 1, 2022-June 30,2022.

1． JAL Group Consolidated results
Passenger demand that had decreased significantly by the COVID infection was on a recovery trend again in this first quarter due to the advancement of vaccination and adjustment to a post-COVID lifestyle. International passenger demand has been gradually recovering as worldwide border
restrictions eased and business travels from Japan restarted. Domestic passenger demand has been steadily recovering especially from the Tokyo metropolitan area as the state of emergency
declaration and similar preventive measures were fully lifted. For cargo business, despite the Russia-Ukraine situation, disrupted ocean shipments led to strong demand for air cargo and further price
increase, which resulted in our cargo business to remain very strong. During this period, fuel prices
rose and the yen depreciated significantly.

In the above business environment, the revenue for the first quarter were increased by 102.1% year on year to 268.8 billion yen, the operating expenses increased by 40.7% year on year to 303.0 billion yen, the loss/earning before financing and income tax (hereinafter referred as “EBIT”) was loss of
27.5 billion yen(EBIT loss of 82.6 billion yen in the previous year). The loss attributable to owners of
the parent was 19.5 billion yen (the loss attributable to owners of the parent 57.9 billion yen in the
previous year). Fuel expenses for the period totaled 69.8 billion yen, increased by 162.6% from the
same period last year, and actual fixed costs amounted to 120.7 billion yen.

International passenger revenue for Full Service Carriers was 62.4billion yen(increased by 457.0%
year on year),domestic passenger revenue was 88.0 billion yen(increased by 131.4% year on year),
and cargo mail revenue was 65.3 billion yen(increased by 37.1% year on year).

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

    Major Operating Expense Items

2． Summary of Consolidated Statement of Financial Position and Cash Flow
-Equity ratio is 39.2% for credit evaluation basis, Net D/E ratio is x0.2, keeping a healthy level.
-Liquidity at hand was maintained at a sufficient amount of 530.3 billion yen at the end of June, as
well as the unused credit line of 250.0 billion yen, which has been reduced because of the improvement of cash inflow.
-As a result of a recovery trend in passenger demand, Operating cash flow is 78.7 billion yen of inflow and Free cash flow is 46.3 billion yen of inflow.

3． First Quarter and recent initiatives
【ESG strategy】
- In June, our ESG initiatives and its disclosure were highly evaluated and thus JAL was selected as a constituent of two leading investment indices, “the FTSE Blossom Japan Index”
and “the FTSE Blossom Japan Sector Relative Index”.
【Full Service Carrier business domain】
-On international routes, due to the easing of entry restrictions to Japan and other
factors, gradual recovery of passenger demand to/from Japan. In addition, JAL steadily captured transit passenger demand travelling between Asia and North America.
-For domestic routes, we conducted promotional campaigns with local governments and
railroad companies to stimulate Tokyo-inbound demand. Also, JAL has almost completed
upgrading the main large-size fleets to A350s which enabled us to provide enough capacity
to meet the recovering demand in a timely manner. Due to this, JAL were able to effectively
capture the strong demand ​during the long-holiday season in May.
【LCC business domain】
- Our mid- and long-haul international low-cost carrier, ZIPAIR Tokyo (ZIPAIR), has been
gradually recognized by leisure customers and some flights were fully booked during the
peak season. Spring Japan that had become our subsidiary since June 2021, Jetstar Japan started to fly cutting-edge, fuel-efficient A321LR aircraft from July, the three low-cost carriers will continue to provide their customers with useful services and expand their business.
【Non-aviation business domain】
- JAL launched a new partnership program with one of the largest point service providers in
Japan, Rakuten Point, which provided the JAL Groups’customers with much more occasions to earn and redeem JAL mileage.
- For JALUX that became our subsidiary last fiscal year, JAL and JALUX mutually used their respective know-how and resources to conduct joint sales of flight simulator experience as
well as the development of new products.

4．Future Outlook
There is no change to our current full-year forecast of this fiscal year ending March 2023 that was disclosed on May 6, 2022. As the society shifts toward a balance of social economic
activities and COVID prevention, both international and domestic passenger demand have
been steadily recovering. There still exists various uncertain external environments including the Russia-Ukraine situation or price hike of raw materials including fuel. However, we will
strive all together to achieve our performance target of 80 billion yen in EBIT.

5. Dividends
Although our performance and cash flow have been steadily improving, our first quarter EBIT results was a loss of 27.5 billion yen. Thus, there is need to carefully monitor further performance. Therefore, we regret that we cannot pay the interim dividends to shareholders, but we would like to ask for their understanding in this situation.
For the year-end dividends for the fiscal year ending March 2023, while we must keep a
close eye on the geopolitical risk or the fuel price hike risk, we will aim for achieving our
profit target and dividends payment for the fiscal year ending March 2023, unless there
occur significant negative events. We will update our forecast immediately when our
performance becomes foreseeable.