Press Release

Tokyo, JAPAN - To further ensure the achievement of the ”JAL Group Medium-Term Management Plan for Fiscal Years 2021-2025” (hereinafter referred to as “Medium-Term Management Plan”), JAL Group formulated the“JAL Group Medium-Term Management Plan Rolling Plan 2024 for Fiscal Years 2021-2025” (hereinafter referred to as the “Rolling Plan 2024”).

1. Positioning and Direction of the Rolling Plan 2024

The three-year period of the JAL Group Medium-Term Management Plan for FY2021-2025 nearing the end with only two years left to go. In the new post-COVID-19 environment, the JAL Group expects to achieve higher profits in FY2023 than before the pandemic. At the same time, the JAL Group is faced with new challenges common to all, such as the unstable global conditions, rising prices, and a shortage of human resources. In light of these changes in the business environment, the JAL Group has formulated the Rolling Plan 2024 in order to complete the Medium-Term Management Plan in FY2025 and to prepare ahead of time for medium- to long-term growth.

2. Key Points of the Rolling Plan 2024

【Performance Forecast and Profit Targets]
Based on the latest domestic and international passenger and cargo demand forecasts, the expected consolidated full-year performance EBIT for FY2023 has been revised upward from the previous forecast of 130 billion yen to 140 billion yen. Additionally, the expected consolidated full-year performance for FY2024 is set at an EBIT of 170 billion yen, and the previously set EBIT target of over 185 billion yen for FY2025 has been revised upward to 200 billion yen.

[Business Model Reform]
Through the promotion of ESG strategies, business model reforms will be carried out to achieve the profit targets for FY2025 and realize a business model with resilience and growth potential. Specifically, in the Full-Service Carrier (FSC) and Cargo and Mail domain, the profit structure will be restructured to generate profits even in the new post-COVID-19 environment. In the LCC and Mileage, Lifestyle and Infrastructure domains, the business will be further expanded and grown, aiming to achieve an EBIT of approximately 85 billion yen in total.

[Management Targets]
By implementing initiatives across business domains, the goal is to achieve the Management Targets for FY2025 and improve the sustainability of business operations.

[Building Relationships and Connections]
In the Rolling Plan 2023, a value creation story was presented, which states “Creating social and economic value by building relationships and connections through air transportation to enhance corporate value”. In the Rolling Plan 2024, the “number of people related to the interacting communities” and “level of community involvement” within the JAL Group will be quantized, and efforts will be made to sustainably improve these factors. The aim is to increase the “Total amount of relationships and connections” by 1.5 times by 2030.

[Human Capital Management]
Realize an environment in which diverse human resources can work in a variety of fields, providing rewards based on their abilities to improve engagement and create value.

[Management Resource Allocation]
To balance the acceleration of ESG strategies and strengthen competitiveness, significant investments will be made in assets, including the introduction of fuel-efficient aircraft. The investment plan includes 310 billion yen in FY2024 and 240 billion yen in FY2025. In addition, returns to shareholders will gradually increase as performance recovers. The dividend payout ratio for FY2024 is planned to be 35%.

JAL Group will unite all employees to implement the Rolling Plan 2024 and work to realize the “JAL Vision 2030”, the ideal image for the future, with “Safety and Peace of Mind” and “Sustainability” as the engines of growth. The ultimate goal is to become the world’s most preferred and valued airline group, by helping to create a vibrant society and a future where many people and goods freely move around.

Attachment: “JAL Group Medium-Term Management Plan FY2021-2025 Rolling Plan 2024”