Press Release
JAL Group Announces Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 2027
Summary
- Revenue for both aviation business and the Mileage/Finance and Commerce Business exceeded the previous year’s levels, reaching 523.7 billion yen (up 11.2% year-on-year), achieving record-high revenue for the first quarter.
- For EBIT, a consolidated profit of 12.7 billion yen (down 72.1% year-on-year) was maintained despite strong headwinds such as sharp rises in fuel costs and persistent yen depreciation, supported by the strong profitability of international passenger flights and contributions from a diversified revenue base in non-aviation business.
- For this fiscal year, the target EBIT of 180.0 billion yen and net profit of 110.0 billion yen will continue to be pursued.
Tokyo, JAPAN - The JAL Group today announced its consolidated financial results for the first quarter of fiscal year ending March 2027 (April 1, 2026 - June 30, 2026).
1. JAL Group Consolidated Financial Results
For the first quarter, despite demand shifts and soaring fuel costs driven by escalating Middle East tensions, the JAL Group achieved a record-high revenue of 523.7 billion yen (up 11.2% year-on-year), by agile pricing strategies that captured high demand in international passenger flight and cargo, as well as unit price improvements in domestic flights. Soaring fuel costs and the persistent depreciation of the yen led to a sharp increase in fuel expenses, increasing the operating expenses by 18.7% year-on-year to 516.8 billion yen. As a result, EBIT was 12.7 billion yen (down 72.1% year-on-year), and net profit was 5.3 billion yen (down 80.2% year-on-year).
2. Performance by Business Segment
Soaring fuel costs led to an increase in revenue and decline in profit year-on-year in the Full-service Carrier and the LCC segment. For the Mileage/Finance and Commerce Business, strong mileage issuance revenue led to an increase in revenue and profit.
Full Service Carrier Business
Although soaring fuel costs resulted in an EBIT loss of 0.8 billion yen, unit price improvements for both international and domestic passenger flights through agile revenue management, along with capturing cargo demand from the expansion of the freighter network, contributed to a revenue growth of 13.8% year-on-year to 420.2 billion yen.
■ International Passenger
Against soaring fuel costs, agile revenue management and the modification of fuel surcharge schemes contributed to a sharp increase in unit price.
As a result, although passenger numbers declined by 0.4% year-on-year, passenger revenue grew by 14.4% year-on-year.
■ Domestic Passenger
To drive structural reform, the JAL Group thoroughly executed revenue management and optimized limited-time sales, achieving an increase in unit prices.
As a result, although passenger numbers declined by 2.7% year-on-year, passenger revenue grew by 3.6% year-on-year.
■ Cargo and Mail
For international cargo, successfully capturing the robust demand between Asia and North America, as well as expanding the freighter network through partnership with Cargolux Airlines, resulted in a significant increase in revenue of 56.4% year-on-year.
Domestic cargo revenue increased by 6.5% year-on-year, driven by efforts to capture new demand.
LCC Business
Reflecting strong growth in the LCC market, revenue increased by 6.7% year-on-year to 32.4 billion yen, while resulting in an EBIT loss of 0.1 billion yen due to the sharp rise in fuel market costs.
■ ZIPAIR
The enhancement of product value through the installation of high-speed internet service "Starlink" across all fleets, and flexible price strategies responding to the market, led to a 6.5% increase in passenger revenue year-on-year.
■ SPRING JAPAN
Although revenue declined by 4.8% year-on-year due to shrinking supply, strong demand from major cities such as Beijing and Shanghai (Pudong) was steadily captured, achieving a significant increase in revenue per passenger year-on-year.
Mileage/Finance and Commerce Business
Steadily increasing mileage issuance in the non-aviation domain through the organic growth in volume of payment and the broadening of global partnerships, as well as maintaining the soundness of mileage cycle through various redemption options, led to revenue growth of 13.3% year-on-year to 56.3 billion yen and EBIT growth of 17.6% year-on-year to 12.0 billion yen, maintaining stable profit growth.
Other
A decline in contracted ground handling flights caused by flight reductions from foreign airlines in China and the Middle East led to a 5.5% decline to 56.6 billion yen in revenue, while the fluctuation of foreign exchange valuation gains and losses for the JAL Innovation Fund resulted in EBIT growth of 96.7% year-on-year to 2.6 billion yen.
3. JAL Group Consolidated Financial Position and Cash Flow
4. Dividend
The full-year consolidated financial forecast for the fiscal year ending March 2027 remains unchanged from the forecast announced in the "Consolidated Financial Results for the Year Ended March 31, 2026" dated April 30, 2026. The forecast includes consolidated revenue of JPY 2,095.0 billion, EBIT of JPY 180.0 billion, and net profit of JPY 110.0 billion. The annual dividend forecast remains JPY 96 per share.
5. Recent Initiatives
Full Service Carrier Business
●To support the achievement of the Japanese government's target of 60 million inbound visitors to Japan by 2030 and to promote regional economic revitalization, efforts are underway to expand international flights directly connecting regional airports. As the first phase, flights will operate on the Kansai-Taipei (Taoyuan) route between September and October 2026, and the Naha-Taipei (Taoyuan) route will be transitioned to year-round operation. Through these initiatives, the JAL Group will generate new regional economic cycles and contribute to establishing a sustainable tourism-oriented nation.
●Between November 2025 and August 2026, four major digital customer touchpoints (apps and websites) are being renewed. The JAL Group will provide an intuitive, seamless, and stress-free digital experience across every stage of the journey--from daily life and trip preparation to boarding.
●In May 2026, in collaboration with GMO AI & Robotics Corporation, a demonstration experiment began for Japan's first implementation of humanoid robots at airports. To address the worsening labor shortage in ground handling, the versatility of humanoid robots--which can be introduced without major modifications to existing airport infrastructure--will be gradually verified, aiming to establish a sustainable operational framework through labor savings and workload reduction.
LCC Business
●In May 2026, ZIPAIR became the first Asian airline to complete the installation of "Starlink" high-speed internet across its entire fleet, launching high-speed internet service on all flights and routes. Furthermore, in June 2026, the airline operated its first-ever direct charter flights between Narita and Las Vegas, followed by three round-trip direct charter flights between Narita and Orlando in August 2026, actively driving the capture of new demand in the North American market.
●SPRING JAPAN has progressively increased operating frequencies on domestic routes launched on April 23, 2026. Among these, service on the Nagoya (Chubu)-Sapporo (New Chitose) route was expanded to two daily flights starting July 18, 2026.
Mileage/Finance and Commerce Business and Other
●A capital and business alliance agreement was signed with Lifenet Insurance Company on April 30, 2026. By combining JAL's base of approximately 41 million JAL Mileage Bank members, miles, and other assets with Lifenet's established presence, advanced UI/UX, and expertise as an online life insurer, the two companies will co-create products and services that support customers' safety and peace of mind throughout their daily lives and futures.
●In collaboration with NTT DOCOMO, INC., "JAL Mobile powered by ahamo" was launched. While maintaining JAL Mobile's exclusive benefits--such as earning monthly recurring miles and Life Status Points, and redeeming domestic reward tickets via "Dokokani Mile" at a 78% discount--new options have been added to align with increasingly diversified lifestyles.
●Following the launch of "JAL Denki" (JAL Electricity) in February 2022, "JAL Water" was introduced on June 19, 2026, in collaboration with Premium Water, and "JAL Gas" on July 23, 2026, in collaboration with TEPCO Energy Partner, Inc. By establishing a system to double-earn miles and Life Status Points on monthly water server and gas payments, the JAL Group seamlessly connects essential living infrastructure--electricity, gas, and water--with JAL Mile Life, aiming toward an inspiring and rich future society.
●On July 14, 2026, a strategic partnership was established with Marriott International, launching reciprocal status matching and providing opportunities for accelerated status upgrades. From air travel to stays at over 10,000 hotels worldwide, the JAL Group will deliver an elevated travel experience, further enriching the journeys of domestic and international customers.
Regional Revitalization
On July 17, 2026, "Tsunagaru, Ni-chiiki Gurashi 2026" (Dual-Regional Inhabitation 2026) was launched. The target coverage was significantly expanded from 6 regions last fiscal year to 36 regions nationwide, providing travel cost support through mileage awards based on flight usage, along with opportunities for local interaction. Furthermore, starting this fiscal year, "KANTSUNA Co-Creation Co., Ltd."--a new JAL Group company dedicated to building relationships and societal connections between individuals and local communities--will serve as the operating secretariat, driving group-wide efforts to promote dual-regional inhabitation and enhance well-being for both society and individuals.
●A dual-regional inhabitation program was initiated in collaboration with East Japan Railway Company (JR East) and West Japan Railway Company (JR West). As a pioneering joint initiative combining air and rail transport beyond traditional transport industry boundaries, this partnership aims to resolve local labor shortages and create "relational populations" and permanent residents in respective regions.
To promote initiatives that enhance people's well-being through unique local culinary and stay experiences, sales for "JAL Auberge Furano" began on July 22, 2026, in partnership with Nichido Co., Ltd. Situated on a hill surrounded by the rich nature of Furano, this retreat offers high-quality, peaceful accommodations with all guest rooms equipped with kitchens. Guests can enjoy authentic experiences that delight the five senses through authentic French cuisine produced by top chefs paired with fine wine.
New Businesses
●The JAL Group was ranked 7th overall in Keidanren's "4th Startup Friendly Scoring"--marking the highest rank ever achieved by a company in the transportation industry--receiving high acclaim for diverse business partnerships with startups centered around its CVC fund, "JAL Innovation Fund II," as well as internal systems supporting employee entrepreneurship and new business creation. The JAL Group will continue to strongly drive open innovation and promote the development of innovative services and technologies through co-creation with startups.
●A payload service agreement was signed with ispace, inc. for its lunar landing mission scheduled for 2028, and sales of payload transport capacity to corporations and local governments began on May 27, 2026. The "ARGO PROJECT" was launched to pass on Earth's culture to the Moon; by leading the development of the dedicated "Möbius Ark" container as well as the recruitment and sales of onboard items, the JAL Group aims to realize a society where space transportation becomes more accessible.
●"Aero Breath Co., Ltd.," a joint venture between Mitsubishi Heavy Industries, Ltd. and JAL Engineering Co., Ltd., was established on June 1, 2026. Based at Aichi Prefectural Nagoya Airport, the company aims to commence regional aircraft maintenance services within fiscal 2026, contributing to the development of Japan's aircraft aftermarket business and maintaining safe and
reliable flight operations in response to growing maintenance demand driven by the recovery in air passenger traffic.
Sustainability
●Together with All Nippon Airways Co., Ltd. (ANA), the second edition of a joint report titled "Toward Net Zero CO2 Emissions from Air Transport in 2050" was published on May 27, 2026, outlining the current state of Sustainable Aviation Fuel (SAF) and actions needed to support aviation decarbonization. Both airlines will broadly communicate the mass production and utilization of SAF, collaborating with the government and stakeholders to promote its adoption and ensure air transport--a vital social infrastructure connecting Japan and the world--is passed on to the next generation. At the same time, the JAL Group aims to contribute to the sustainable growth of the Japanese economy through sustainable air transport.
Others
●To create new customer experiences and implement advanced technologies into society, exhibit content at the JAL SKY MUSEUM was upgraded. Through the limited-time introduction of a high-precision "Virtual Fitting System" applying AI technology, visitors can try on not only popular current flight crew and cabin crew uniforms, but also successive generations of cabin crew uniforms and maintenance crew uniforms available for virtual fitting for the first time. In addition, "SoraCruise by Japan Airlines"--a compact-sized virtual ride theater for flying cars that attracted approximately 130,000 visitors at Expo 2025 Osaka, Kansai--was permanently installed, creating an entertainment environment where visitors can enjoy future air travel from diverse perspectives.
