JAPAN AIRLINES Co., Ltd.
Financial Results
1st Quarter Mar/2023（FY2022）

August 1, 2022
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1.

PERFORMANCE OVERVIEW FOR FY22Q1

2.

RECENT OUTLOOK3.

DETAILS OF FINANCIAL RESULTS FORWORLD CLASS

Health Safety Poweredby SimpliFlying Audit
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FY22Q1
4.

The 9thIR Good Visual Award

REFERENCES

Health and Productivity
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ESG Indices※※
THE INCLUSION OF JAPAN AIRLINES CO., LTD. IN ANY MSCI INDEX, AND THE USE OF MSCILOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF JAPAN AIRLINES CO., LTD. BY MSCI OR
ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCIAND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCIOR ITS AFFILIATES.

Note (1) Regarding ﬁgures in tables of this material, amounts are rounded down to the nearest hundred million yen, and the second decimal
point in ratios is rounded oﬀ to one decimal point (2) LCC=Low Cost Carrier
We introduced ESG-related index selections to evaluate executive oﬃcer’s compensations. ※ indicates the applicable index.

©Japan Airlines, ALL rights reserved.

2

PERFORMANCE OVERVIEW FOR FY22Q1✔

Both Revenue and EBIT have improved. Demand has steadily recovered as society shifts
toward a balance of social economic activities and preventing the infection.

✔

Although interim dividends will not be paid as it is necessary to further monitor our
performance, we aim to resume dividends by the end of March 2023.
EBIT (1) / Proﬁt or Loss (2)Revenue(JPY Bn)(JPY Bn)+135.8 Bn(+102.1%)+55.1Bn

Fuel/FX Markets
FY21Q1FY22Q1

Operational Preconditions/ASK
Vs. FY21Q1

Vs. FY21Q1

Singapore Kerosene(USD/bbl)

68.4

136.9

＋100.1%

International
RoutesDomestic
RoutesTotal

Dubai Crude Oil(USD/bbl)

64.5

107.3

＋66.4%＋47.4%＋66.4%＋56.4%FX Rate (JPY/USD)

108.7

125.3

＋15.3％(1) EBIT= Proﬁt/Loss before Financing and Income tax (Proﬁt/Loss before Tax – Finance Income/Expenses) (2) Proﬁt/Loss = Quarterly Proﬁt Attributable to Owners of Parent(3) EBIT Margin =EBIT / Revenue©Japan Airlines, ALL rights reserved.

3

● For the First Quarter, revenue was 268.8 Billion Yen, EBIT loss was 27.5 Billion Yen,and net loss was 19.5 billion yen.
● Passenger demand has steadily recovered, and EBIT has improved by 55.1 billion yen
year-on-year as the society shifts toward a balance of social economic activities andthe prevention of infection.
● In addition, EBIT exceeded our outlook for this quarter by about 20 billion yen, which
we believe is a strong start.
● We sincerely regret to announce that the interim dividend will not be paid as we
believe that it is necessary to further watch our situation. We will make all theeﬀorts to record steady proﬁts from the second quarter onward, and we will doeverything to resume dividends at the end of this ﬁscal year.

©Japan Airlines, ALL rights reserved.

3-S

FY22Q1 Performance by Business Domain
Full Service Carrier

Signiﬁcant increase in revenue
by appropriate resource allocation

LCC LCC

Losses continue but sign of recovery
in leisure and VFR(※) demand is evident
FY22Q1 Revenue

FY22Q1 Revenue

153.1 JPY Bn

3.3 JPY Bn
Revenues of the two
consolidated subsidiaries,
ZIPAIR Japan and Spring Japan

FY22Q1 EBIT

▼3.5 JPY Bn
EBIT of the two subsidiaries andany factors related to the aﬃliatedcompany accounted for by theequity-method, Jetstar Japan

貨物・郵便
Cargo
& MailMileage, Lifestyle, Infrastructure and Others

Int’l cargo revenue x1.4 YoY
keeping good performance

Increase in revenue by recovering
demand and consolidation of JALUXFY22Q1 Revenue

65.3 JPY Bn
Full Service carrier

Cargo & Mail

FY22Q1 Revenue

FY22Q1 EBIT

47.0 JPY Bn

7.7 JPY Bn※ Visit Friends and Relatives

FY22 Q1 EBIT

▼31.7 JPY Bn

•
•
•
•

The revenue and EBIT by each business domain shown above are calculated by a virtual method; Not showing the actual Revenue and EBIT
The criteria shown above does not match Air transportvBusiness Segment or Others
The numbers may be changed because of the internal change of accounting rules ex post
The criteria shown above has started from this ﬁscal year. There is no historical data available.
©Japan Airlines, ALL rights reserved.

4●On this page, I will explain the result of each business domain. From this ﬁscal year, we
will show the result of each domain using internal management ﬁgures.

●

The full-service carrier business has achieved a signiﬁcant increase in sales by capturing
the recovering passenger demand through appropriate preparation of our resources. For
the cargo business, it also surpassed last year's strong performance. As a result, fullservice-carrier business posted an EBIT loss of 31.7 billion yen.

●

LCCs have captured the recovering tourism and VFR demand. For example, ZIPAIR
recorded full passenger ﬂights during the Japanese holiday season in May. However, it wasa challenging period for Spring Japan due to the strict border control in China. As aresult, LCC area posted an EBIT loss of 3.5 billion yen, including Jetstar Japan as anaﬃliate company accounted for the equity method, which is also on the way of recovery.

●

For the Mileage, Lifestyle and Infrastructure business, sales increased steadily due to therecovery of passenger demand and the eﬀect of the consolidation with JALUX. It posted
an EBIT proﬁt of 7.7 billion yen, showing its stable proﬁtability. This business domain
plays a leading role as a future growth driver.

●

We will steadily promote the business structural reforms shown in the medium-term
management plan.

©Japan Airlines, ALL rights reserved.

4-S

1.

PERFORMANCE OVERVIEW FOR FY22Q1

2.

RECENT OUTLOOK3.

DETAILS OF FINANCIAL RESULTS FOR
FY22Q1

4.

REFERENCES©Japan Airlines, ALL rights reserved.

5

INTENTIONALLY LEFT BLANK©Japan Airlines, ALL rights reserved.

Overview of 1st Quarter FY22 ending March 2023
✔ EBITDA recorded positive. EBIT is expected to turn into black in July.
✔ No major concerns about our resources (aircraft/personnel). Aim to achieve EBIT of
80 billion yen capturing the high demand in summer.
✔ Ability to create cash ﬂow is steadily recovering; Positive cash ﬂow from operating
activities of 78.7 billion yen, Positive free cash ﬂow of 46.3 billion yen
EBIT Changes

Operating & Free Cash Flow Changes■Cash ﬂow from operating activities■Free Cash ﬂow©Japan Airlines, ALL rights reserved.

6●On this page, I will focus on some points of business performance.

●

EBIT did not turn into the black on a monthly basis in the ﬁrst quarter, but we
expect EBIT to turn into the black in July.

●

Contrary to some other airlines, there are no major resource-related concerns
about our operations. While it is necessary to pay close attention to the impact of
the spread of infection, we continue to aim for the forecasted, yearly EBIT of 80
billion yen by surely capturing the recovery of demand.

●

In the case where passenger demand temporarily decreases, positive EBIT for theﬁrst half is achievable through increase in revenue of Mileage and Cargo, as well as
further cost reduction.

●

As for cash ﬂow, we have taken oﬀ from long impact of pandemic. The cash ﬂow
from operating activities was an inﬂow of 78.7 billion yen. Our ability for cash
ﬂow creation has been steadily recovering. Our free cash ﬂow was positive for theﬁrst time since the pandemic.

©Japan Airlines, ALL rights reserved.

6-S

Recent Outlook
Int’l & Domestic Passenger Operations (Full Service Carrier)✔ For Int’l, demand to/from Japan is recovering gradually; We will also capture the strongtransit demand between Asia and North America.
✔ For Domestic, demand is recovering gradually as restrictions are eased✔ We expect steady recovery toward the high season in summer, however, we will closely
watch the eﬀects of the current spread of infection✔ Launched “JAL Carbon Oﬀset” program for corporate travel
International Passenger (1)(1) Forecast as of July 27, 2022

Domestic Passenger (1)©Japan Airlines, ALL rights reserved.

7

●
●

●

●

●

On this page, I will explain the current trends in passenger demand.
For international, demand to and from Japan is gradually recovering, and we are alsosteadily capturing the strong transit demand between Asia and North America. Due toJapan’s border controls which are signiﬁcantly stricter than those of other countries,
and PCR tests required before boarding ﬂights to Japan, tourism in August and businesstrip from Japan in September are slightly sluggish. We continue to request the
government to lift or relax these restrictions as an industry, and we are conﬁdent thatthe speed of recovery will increase dramatically if these easing are realized.
For domestic, demand is slowly recovering since the lift of restrictions in March, and is
expected to steadily recover toward the high demand season in summer. In July, It
recovered to approximately 80% compared with pre-pandemic levels.
On the other hand, reservation is slowing down from August and some cancellations areseen for the Okinawa routes. We will pay close attention to the situation and will be
prepared to launch the proﬁt recovery plan if we observe a steep drop in demand. As oftoday, we expect a 80-90% recovery compared with the pre-pandemic level in Augustand September.
In July, we launched the "JAL Carbon Oﬀset" plan for corporate passengers. Providing
opportunities for corporate customers to reduce CO2, we will work to protect theenvironment and increase our sales at the same time.

©Japan Airlines, ALL rights reserved.

7-S

Recent Outlook
Cargo & LCC✔ Cargo business recorded signiﬁcant increase in revenue, capturing strong Int’lcargo demand utilizing both own aircraft and other company’s freighters. This
trend is expected to continue for this year
✔ For LCC business, both int’l and domestic demand is recovering steadily. ZIPAIR will
post proﬁt in July.
LCC (1)(2)

Cargo (1)VolumeInt’l
Cargo(Vs. FY2019)

Domestic
Cargo

Unit Price
Int’l
Cargo

Domestic Passenger

International Passenger
Domestic
Cargo（’000）（’000）(Vs. FY2019)(1) Forecast as of July 27, 2022 (2) Int’l includes ZIPAIR and Spring Japan, domestic includes Spring Japan and Jetstar Japan©Japan Airlines, ALL rights reserved.

8●On this page, I will explain the current situation of the Cargo and LCC business.

●

As for international Cargo demand, the industry-wide total demand from Japandecreased due to the lockdown in Shanghai. However, issues of marinetransportation has not been resolved. Therefore, our demand continues to bestrong especially for Asia to North America routes. In addition, unit prices
especially for European routes are rising sharply. Thus, the trend for both demand
and unit price continue to be favorable. We believe that this situation willcontinue for the time being.

●

LCC shows the number of passengers of three companies, which includes two
consolidated subsidiaries of ZIPAIR and Spring Japan, and Jetstar Japan. These
three companies are still struggling, however, both international and domestic
demand is recovering other than the China Routes, which still have strict border
restrictions. Especially for ZIPAIR, its market awareness is increasing and plans togrow its number of passengers with the expansion of its network, which we hope
you will look forward to.

©Japan Airlines, ALL rights reserved.

8-S

1.

PERFORMANCE OVERVIEW FOR FY22Q1

2.

RECENT OUTLOOK3.

DETAILS OF FINANCIAL RESULTS FOR
FY22Q1

4.

REFERENCES©Japan Airlines, ALL rights reserved.

9

INTENTIONALLY LEFT BLANK©Japan Airlines, ALL rights reserved.

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
Consolidated Financial Results
FY19Q1（JPY：Bn ）FY19Q1FY21Q1

Diﬀ.
RevenueFY21Q1FY22Q1
y/y

Diﬀ.

y/y

348.8

133.0

268.8

▼79.9

▼22.9%+135.8+102.1%

284.3

97.7

218.4

▼65.8

▼23.2%＋120.7＋123.5%International PAX (Full Service Carrier)

130.6

11.2

62.4

▼68.1

▼52.2%+51.2+457.0%

Domestic PAX (Full Service Carrier)

127.1

38.0

88.0

▼39.0

▼30.7%+49.9+131.4%

Cargo / Mail

22.7

47.6

65.3

+42.5

＋187.4%+17.6+37.1%

Full Service Carrier Other Revenue

3.8

0.8

2.6

▼1.2

▼31.7%+1.8+219.7%

-

0.0

3.3

-

-

+3.3

-

64.4

35.2

47.0

▼17.4

▼27.1%+11.7+33.5%

330.9

215.4

303.0

▼27.8

▼8.4%

+87.5

+40.7%

Fuel

63.6

26.5

69.8

+6.1

＋9.7%

+43.2

+162.6%

Excluding Fuel

267.2

188.8

233.1

▼34.0

▼12.7%+44.3+23.5%

Others (3)

2.0

▼0.２

6.6

+4.5

+222.9%

+6.8

-

EBIT

19.9

▼82.6

▼27.5

▼47.4

-

+55.1

-

EBIT Margin (%)

5.7%

-

-

-

-

-

-

Proﬁt or Loss

12.9

▼57.9

▼19.5

▼32.5

-

+38.3

-

17.2%

-

5.4%

▼11.9pt---

Full Service Carrier

LCC (1)
Mileage, Lifestyle and Infrastructure and others (2)Operating Expenses

EBITDA Margin(%)(4)(1) LCC＝Passenger revenue and related charges or fees (2) Mileage, Lifestyle and Infrastructure and others = Travel Agency, Mileage, Ground Handling etc.
(3) Others = Gain or Loss on Sales of Aircraft, Other Revenue, Share of Proﬁt or Loss of Investment and Income/Expenses from Investment(4) EBITDA Margin = EBITDA/Revenue©Japan Airlines, ALL rights reserved.

10

● From this page, I will show you the result of the ﬁrst quarter.
● Page 10 shows consolidated results.
● In order to make it easier to understand, we have categorized income into
diﬀerent business areas.

©Japan Airlines, ALL rights reserved.10-S

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
Changes in EBIT (Revenues／Expenses)+ stands for proﬁt increase（ revenue increase, cost decrease )▼ stands for proﬁt decrease ( revenue decrease, cost increase )ASK y/y ： +56.4%
RPK y/y ： +218.8%＋55.1 Bn
（JPY Bn）

Mileage, Lifestyle andInfrastructure
Full Service
and others (1) Fuel
Carrier
Cargo
▼43.2
LCC
+11.7
Other
& Mail+3.3
Domestic ＋17.6+1.8
Passenger+33.5%+219.7%
Maintenance
Other
+49.9
Aircraft Personnel
Expenses▼5.0+37.1%▼9.2▼1.2▼162.6%▼28.7▼28.9%▼3.7%
Int'l▼15.3%
Others(2)Passenger
▼27.5
+6.8
+51.2

▼82.6

FY21
Q1

FSC

(3)

・FX

+131.4%▼37.0%

Landing &Navigations fees
Sales Commissions+457.0%

FSC
FX
(TTL)

+1.0
+3.8
+4.9

FSC
FX
(TTL)

+4.9
+3.3
+8.3

FSC
FX
(TTL)

+0.2
+0.2

Revenue +135.8 Bn (+102.1%)

FSC TTL +6.0
FX TTL
+7.4
(TTL)
+13.4

Services
Expenses of Travel
AgencyOther than above

-

FY22
Q1

▼3.2
▼3.1
▼2.9
▼4.2
▼15.1

Total ▼28.7

Expenses ▼87.5 Bn (▼40.7%)(1) Mileage, Lifestyle and Infrastructure and others = Travel Agency, Mileage, Ground Handling etc. (2) Others = Gain or Loss on Sales of Aircraft, Other Revenue,©Japan Airlines, ALL rights reserved.
Share of Proﬁt or Loss of Investment and Income/Expenses from Investment (3) FSC=Fuel Surcharge

11

● This page shows the factors behind the improvement in EBIT through revenue
and expense.
● Revenues increased in all areas, by 135.8 billion yen year-on-year due to therecovery of passenger demand and the continued strong performance of the
cargo business.
● As for costs, fuel costs have increased signiﬁcantly due to the soaring fuelmarket and depreciation of the yen, and costs linked to operations and numberof passengers have increased. During this phase of gradually shifting from thedefensive to the oﬀensive, we have continued to take appropriate cost control
measures, thus cost increase was suppressed to 87.5 billion yen.
● As a result, EBIT improved 55.1 billion yen year-on-year.

©Japan Airlines, ALL rights reserved.

11-S

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
Changes in EBIT (Market and other impact)（JPY Bn）+ stands for proﬁt increase（revenue increase, cost decrease)▼stands for proﬁt decrease (revenue decrease, cost increase))

Impact fromCurrency Market ▼9.1 Bn
Revenue
Cost
Fuel
Ex. Fuel＋55.1 Bn

+7.4 Bn▼16.5 Bn
▼10.5 Bn
▼5.9 Bn(Excl. Market Impact)

Revenueincrease

Cost
increase

▼45.3
▼27.5
▼82.6

FX
(excl.Fuel)+1.4▼1,045
Fuel(excl.Hedging)

Hedgingetc.
FSC(1)

FY21
Q1

▼45.8

Revenues
+7.4
Cost
▼5.9
excl. Fuel
Total +1.4

FX
Market
Total

▼10.5
▼35.2
▼45.8

Market impact(1) FSC=Fuel Surcharge

FY22
Q1

+122.3

+16.4

+6.0

Int’l
Passenger
Int’l Cargo
Total

+1.0
+4.9
+6.0

▼21.9 Bn

Int’l
+46.3
Passenger
Domestic+49.9
Passenger
Cargo/Mail
+9.3
Other
+16.7
Total +122.3

Fuel Volume▼13.8

Maintenance▼1.8Services▼2.5

Aircraft▼0.7

Personnel▼8.8
Other than
▼17.7
those above
Total ▼45.3

Others +77.0 Bn©Japan Airlines, ALL rights reserved.

12

● This page shows the improvement of EBIT by dividing it into market ﬂuctuations
and other factors.
● The impact of market was a negative of 21.9 billion yen year-on-year. Although
the negative impact of the rapid rise in the fuel market and the depreciation of
the yen is signiﬁcant, we worked to reduce the impact by applying fuelsurcharges, appropriately implementing hedging and receiving subsidies fromthe government.
● We would like to thank everyone involved from the government for their support
in response to the soaring fuel costs.
● On the other hand, with the eﬀects of these market impacts excluded, we haveachieved 77 billion yen of improvement. I am conﬁdent that we have ﬁnally takenoﬀ from the impact of the pandemic.
● The fuel market has recently settled down a little. We hope that the market’s
adverse conditions will soon settle down.

©Japan Airlines, ALL rights reserved.

12-S

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
Int’l & Domestic Passenger Operations (Full Service Carrier)International Passenger

FY19Q1FY21Q1FY22Q1

Vs. FY19Q1

Vs. FY21Q1

Passenger Revenue（JPY Bn）

130.6

11.2

62.4

▼52.2%＋457.0%

Passengers（’000）

2,429

149

728

▼70.0%＋387.5%

RPK（MN passenger km）

12,016

1,018

4,799

▼60.1％＋371.1%

ASK（MN seat km）

13,767

5,222

7,097

▼48.4%＋35.9%

L/F（%）

87.3%

19.5%

67.6%

▼19.7pt＋48.1pt

Revenue per Passenger（JPY） (1)53,76875,04185,739＋59.5%＋14.3%

Yield（JPY）(2)

10.9

11.0

13.0

＋19.8%＋18.2％

Unit Revenue（JPY）(3)

9.5

2.1

8.8

▼7.2%

＋309.9%Domestic Passenger

FY19Q1FY21Q1FY22Q1

Vs. FY19Q1

Vs. FY21Q1

Passenger Revenue（JPY Bn）

127.1

38.0

88.0

▼30.7%＋131.4%Passengers（’000）

9,272

2,708

6,081

▼34.4%＋124.5%

RPK（MN passenger km）

6,973

2,012

4,569

▼34.5%＋127.1%

ASK（MN seat km）

9,022

4,972

8,187

▼9.3％

＋64.7%

L/F（%）

77.3%

40.5%

55.8%

▼21.5pt＋15.3pt

Revenue per Passenger（JPY） (1)13,707

14,047

14,474

＋5.6%

＋3.0％

Yield（JPY）(2)

18.2

18.9

19.3

＋5.7%

＋1.9%

Unit Revenue（JPY）(3)

14.1

7.7

10.8

▼23.7％＋40.5%(1) Revenue per Passenger = Passenger Revenue / Passengers(2) Yield = Passenger Revenue / RPK (3) Unit Revenue = Passenger Revenue / ASK©Japan Airlines, ALL rights reserved.

13

● This page shows the international and domestic performance.
● International passenger revenue was 62.4 billion yen, about 5.6 times year onyear.
● Domestic passenger revenue was 88 billion yen, about 2.3 times year on year.
● While both international and domestic passenger demand is recovering, we havebeen able to maintain and achieve a high unit price level compared to last year
by implementing fare revisions and appropriate revenue management.

©Japan Airlines, ALL rights reserved.

13-S

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
CargoInternational Cargo

FY19Q1FY21Q1FY22Q1

Vs. FY19Q1

Vs. FY21Q1

Cargo Revenue (JPY Bn)

15.1

38.9

56.9

＋277.1%＋46.5%

Available Ton Km (MN ton km)

1,097

787

895

▼18.4%＋13.7%

Revenue Ton Km (MN ton km)

589

735

729

＋23.7%▼0.7%

Carried Cargo Weight (Thousand ton)

99

121

118

＋19.7%▼2.3%

Revenue Ton (JPY/kg)

152

320

480

＋215.0%＋49.9%✔

✔

Secured same level of weight as previous year while demand to/from Japandecreased approx. 10% mainly for auto-related demand due to reasons such as
the lockdown in China
Unit prices continue to rise due to tight supply-demand balance, especially for
European routes
Domestic Cargo

FY19Q1FY21Q1FY22Q1

Vs. FY19Q1

Vs. FY21Q1

Cargo Revenue (JPY Bn)

5.0

5.5

4.8

▼3.7%

▼12.4%

Available Ton Km (MN ton km)

410

226

372

▼9.4%

＋64.5%

Revenue Ton Km (MN ton km)

80

53

64

▼20.6%＋19.2%

Carried Cargo Weight (Thousand ton)

86

54

66

▼23.4%＋21.2%

Revenue Ton (JPY/kg)

58

101

73

＋25.8%▼27.7%✔
✔

Captured cargo demand that had ﬂowed out to other transportation modes as
passenger ﬂights recovered
Unit prices has decreased from previous year due to the easing of
supply-demand balance©Japan Airlines, ALL rights reserved.

14

● This page shows the performance of the Cargo business.
● The total weight of international cargo was almost the same as last year
due to the decline in the demand for cargo from Japan. Nevertheless, due
to the rise in unit prices, revenue continued to be strong at about 1.5 times
the previous year’s revenue, which was 56.9 billion yen.
● For domestic cargo, performance was steady for the ﬁrst quarter. Unit
price has been normalized due to the recovery of domestic ﬂights.

©Japan Airlines, ALL rights reserved.

14-S

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
LCC
SpringJapan (1)

ZIPAIRLCC
FY21Q1
Passenger Revenue (JPY Bn)

FY22Q1FY21Q1比

FY22Q1

0.0

2.0

-

1.2

Passengers (‘000)

1

53

-

42

RPK（MN passenger km）

4

269

-

39

270

983

+263.0%

101

1.7%

27.4%

+25.7pt

38.5%

21,20838,121+79.7%

28,431

7.4

7.6+29.9%

31.1

0.1

2.1

-

12.0

ASK（MN seat km）
L/F (%)
Revenue per Passenger (JPY)
Yield (JPY)

(2)

(3)

Unit Revenue (JPY) (4)Reference

Jetstar Japan
Passengers (‘000)
L/F (%)FY21Q1FY22Q1

Vs. FY21Q1

487

962

+97.3%

66.0%

76.3%

+10.2pt(1) No data for Spring Japan’s FY21Q1 due to pre-consolidation. Summary of International and domestic passenger business(2) Revenue per Passenger = Passenger Revenue / Passengers(3) Yield = Passenger Revenue / RPK (4) Unit Revenue = Passenger Revenue / ASK©Japan Airlines, ALL rights reserved.

15

● This page shows the performance of the LCC business.
● ZIPAIR mainly contributed to Cargo transportation last year, but they
started the full-scale LCC passenger business and contributed to asigniﬁcant increase in passenger revenue with an unexpectedly high level ofancillary revenue this year. ZIPAIR is expected to turn into black in July. We
are very conﬁdent about their medium to long distance specialized LCC
business model.
● Spring Japan, which was consolidated last year, has been withstanding thelimited operation of international ﬂights due to the restrictions of theChinese border, but is trying to maximize proﬁt by temporarily shifting
their resource to domestic ﬂights.
● The recovery of Jetstar Japan, a domestic LCC, is slow due to the impact of
the fuel and FX market. However, they are showing signiﬁcant improvementin their load factor by actively capturing the recovering trend of tourism.

©Japan Airlines, ALL rights reserved.

15-S

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
Mileage, Lifestyle and Infrastructure
JAL Mileage and Lifestyle Concept～ Make Everyday life and life even better with miles～~ make everyday life and all life stages
even better with miles ~TravelAirlineMedicalCare

Air
Mobility

Marriage

Education

Communications

Payment
Nursing care

Local Products

Foodstuff
EntertainFinancial
mentServices Health■ Expanding alliances with otherindustries• Launched mutual point and mileageexchange program with “Rakuten Point”, oneof the biggest point service providers• Launched “JAL object-limited loan(2)” forGroundMobility
Utility Cost

Housing

Recent Updates

Commerce
Clothing“JAL NEOBANK(1)”• Launched “JAL Electric Power” which allows
the earning of mileage with electric expense• Started accepting "Children's Dream Support
Miles" (Support for ﬁnancially diﬃcult
families)■ Expand synergies with JALUXProvide diverse services
in everyday life and all life stages andexpand ways to earn and use miles• Jointly developed new products such as
Flight simulator experience and EC for
products provided in JAL lounge(1)JAL NEOBANK：A service that allows you to complete banking functions such as deposits and payments within the app with an online bank accountexclusively for JAL Mileage Bank members that utilizes the latest IT technology of SBI Sumishin Net Bank
(2)As a bank agent of SBI Sumishin Net Bank, provide loans according to the purpose such as travel funds, education funds, purchase funds for automobiles
and motorcycles. Able to earn miles according to your loan balance。
©Japan Airlines, ALL rights reserved.

16

● On this page, I will explain our strategies and initiatives in the Mileage,
lifestyle and infrastructure business.
● As shown on page 5, this area has steadily recorded proﬁts this quarter, andwe expect it to be one of the key areas of the JAL Group's businessstructural reforms.
● We are accelerating various eﬀorts toward the realization of our concept
shown in the medium-term plan.

©Japan Airlines, ALL rights reserved.

16-S

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
Expenses✔ Actual ﬁxed cost for Q1FY22 was 120.7 billion yen, in diﬃcult market conditions✔ Implementation of appropriate cost control measures to maintain 500 billion yen for FY22
Major Operating Expense Items
FY21Q1FY19Q1（Bn Yen）

FY19Q1FY21Q1FY22Q1
Diﬀ.

(%)

Diﬀ.

(%)

Fuel

63.6

26.5

69.8

+6.1

＋9.7%

+43.2

+162.6%Landing andNavigation

21.4

8.0

11.2

▼10.1

▼47.3%+3.2+40.7%

Maintenance

19.2

17.5

22.6

+3.3

＋17.5%+5.0+28.9%

Sales Commissions

4.6

1.3

4.4

▼0.2

▼5.0%

+3.1

+234.1%

(1)

11.3

3.0

5.9

▼5.3

▼47.2%+2.9+94.1%

Other Variable
Costs (2)

50.6

22.8

34.5

▼16.0

▼31.8%+11.7+51.6%

Aircraft (3)

31.7

32.9

34.1

+2.3

＋7.5%

+1.2

+3.7%

76.0

60.7

70.0

▼6.0

▼7.9%

+9.2

+15.3%

52.0

42.3

50.0

▼1.9

▼3.8%

+7.7

+18.2%

330.9

215.4

303.0

▼27.8

▼8.4%

+87.5

+40.7%

Services

Personnel(3)

Other Costs
Total

(3)

Excludes temporal
costs and variablefactors, etc

Actual Fixed Costs (4)55%Expense Breakdown
40%©Japan Airlines, ALL rights reserved.

17

● This page shows our cost management initiatives.
● The actual ﬁxed cost was 120.7 billion yen. We are implementing appropriate
cost control within the level to the achieve the annual ﬁxed cost of 500
billion yen, promised in the medium-term management plan.

©Japan Airlines, ALL rights reserved.

17-S

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
Fuel Costs
Changes in fuel costs(JPY Bn)

FUEL/FX Markets

MarketFY21Q1+35.2
FX

Volumeincrease

69.8
Hedging+10.5 and others
▼16.4

+13.8

26.5
＋43.2 BnVs FY21Q1

Singapore Kerosene(USD/bbl)

68.4

136.9

＋100.1%

Dubai Crude (USD/bbl)

64.5

107.3

＋66.4%FX rate (USDJPY)

108.7

125.3

＋15.3％FY22Q1(＋162.6%)

FY21Q1FY22Q1

Impact on proﬁt per month by Fuel and FX rate changes from FY22Q2(Incl. hedging and Fuel surcharges)(JPY Bn)FX(USD/JPY)

Dubai Crude

95USD

105USD

115USD

125USD

Singapore
Kerosene

120USD

130USD

140USD

150USD

140JPY

▼2.0

▼2.5

▼3.5

▼4.0

135JPY

▼1.5

▼2.0

▼3.0

▼3.5

130JPY

▼1.0

▼1.5

▼2.0

▼3.0

125JPY

▼0.5

▼1.0

▼1.5

▼2.5

120JPY

±0

▼0.5

▼1.0

▼1.5

Fuel
Proces(USD/bbl)

Base・Hedging Ratio is 45% as of AUG 1, 2022.

©Japan Airlines, ALL rights reserved.

18

● On this page, we will explain the fuel costs.
● Fuel costs for the ﬁrst quarter was 69.8 billion yen, which increased by 43.8
billion yen year-on-year. While consumption did increase, this is mainly due tomarket situations. In addition to soaring crude oil prices and a signiﬁcantdepreciation of the yen, the diﬀerence between crude oil and jet fuel has been
widened, making strong headwinds.
● The lower row shows the simulated impact by the market ﬂuctuations after
July.
● For example, if the FX is 130 yen and Singapore kerosene is 130 dollar per
barrel, the impact on proﬁt is minus 1.5 billion yen per month.
● As I mentioned at the beginning, the result of EBIT for the ﬁrst quarter
exceeded 20 billion yen compared with the initial forecast. We recognize that
this level of impact to our proﬁt is within our manageable level.
● Of course, if market conditions continue to be high, we will strive to counteract
its negative impact by strengthening cost control for expenses other than fuelcosts.
©Japan Airlines, ALL rights reserved.

18-S

DETAILS OF FINANCIAL RESULTS FOR FY22Q1
Balance Sheet and Cash FlowBS✔ Equity ratio is 39.2% for credit evaluation basis, Net D/E ratio is x0.2, keeping ahealthy levelCF ✔ Cash ﬂow from operating activities is 78.7 billion yen for Q1FY22, Free cash ﬂow
is 46.3 billion yen of inﬂow
Consolidated Balance Sheet
Total Assets

End of FY21

End ofFY22Q1

Diﬀ.
＋73.3 （JPY Bn）

2,371.6

2,444.9

Cash and Deposits

494.2

530.3

＋36.1

Balance of interest-bearing Debt

928.4

921.1

▼7.3

Repayment within one year
(※1)

86.7
(14.4)

99.5(13.5)＋12.7 ※1 Figures in brackets represent aircraft lease
payment within one year(▼0.8)

799.7

783.0

▼16.6 ※2 Figures in brackets represent Equity Ratio

33.7%(41.1%)

32.0%(39.2%)▼1.7pt(▼1.9pt)

1.2x

1.2x

＋0.0x

0.5x
（0.3x)

0.5x（0.2x)▼0.0x(▼0.0x)Shareholders’ Equity (1)Shareholders’ Equity Ratio (%) (2) (※2)
D/E Ratio (x) (3)Net D/E Ratio (x) (4) (※3)
Cash Flow
Cash ﬂow from Operating Activities
Depreciation and Amortization

FY21Q1FY22Q1

Diﬀ.

▼45.8

78.7

+124.6

43.3

41.9

▼1.3

based on credit rating evaluationconsidering Hybrid Finance※3 Figures in brackets represent Net D/E
Ratio based on credit evaluationconsidering Hybrid Finance(1)

Equity attributable to owners of the parent(2)

Ratio of equity attributable to owners of theparent to total assets(3)Interest-Bearing Debt/Shareholders’ Equity(4)(Interest-Bearing Debt - Cash and Deposits) /Cash Flow from Investment Activities

▼47.3

▼32.4

+14.8

Capital Investment

▼49.6

▼35.4

+14.2 (5)Free Cash Flow (5)

▼93.2

46.3

+139.5

41.5

▼15.0

▼56.6

▼51.7

31.2

+82.9

Financial Activities

14.4+53.7 (7)EBITDA=EBIT+Depreciation

Cash Flow from Financing Activities
Total Cash Flow (6)EBITDA(7)▼39.2

EquityCash Flow from Operating Activities + Cash
Flow from Investment Activities(6)

Cash ﬂow from Operating Activities + Cash ﬂow
from Investment Activities + Cash Flow from

©Japan Airlines, ALL rights reserved.

19

● This page shows our balance sheet and cash ﬂow.
● The balance of interest-bearing debt has begun to decline. The net D/E ratio
on a rating evaluation basis is 0.2 times, kept at a healthy level.
● Our cash position at the end of June was 530.3 billion yen, 36.1 billion yen
increase from the previous ﬁscal year due to the accumulation of cash ﬂow
from operating activities. A safe level of cash position is secured with anunused credit line of 250 billion yen,.
● EBITDA achieved positive, and cash ﬂow from operating activities was 78.7
billion yen of inﬂow, which increased signiﬁcantly by 124.6 billion yen
year-on-year due to an increase in advance payments reﬂecting the recoveryof passenger demand. Free cash ﬂow was 46.3 billion yen of inﬂow.
● Page 21 and beyond are for your reference.
● Thank you.

©Japan Airlines, ALL rights reserved.

19-S

1.

PERFORMANCE OVERVIEW FOR FY22Q1

2.

RECENT OUTLOOK3.

DETAILS OF FINANCIAL RESULTS FOR
FY22Q1

4.

REFERENCES©Japan Airlines, ALL rights reserved.

20

[Reference]
Mar/2023 Full-Year Performance Forecast
Consolidated Full-Year Forecast ※Full Service Carrier

LCC (※)FY2021Signiﬁcant increasein sales capturing
recovering demand

Improve EBIT by
recovering demand in
tourism

FY2022（JPY BN）
ResultForecast

Diﬀ.

(%)

682.7

1,390.0+707.2+103.6%528.2

1,110.0+581.7+110.1%Int’l Passenger

68.7

364.0

+295.2+429.1%

Doms Passenger

235.1

525.0

+289.8+123.3%

Cargo & Mail

218.3

208.0

▼10.3

▼4.7％

6.0

13.0

+6.9

+115.9%

2.7

38.0

+35.2

-

151.6

242.0

+90.3

+59.5%

940.2

1,325.0+384.7+40.9%

Fuel

145.4

290.0

+144.5+99.4%

Excluding Fuel

794.7

1,035.0+240.2+30.2%

18.0

15.0

▼3.0

▼16.7%

EBIT▼239.480.0+319.4-

Proﬁt or Loss

▼177.545.0+222.5-

Revenue
Full Service Carrier

Full service carrier
Other revenue

LCC
Mileage, Lifestyle,
Infrastructure and others (1)Operating Expences

Others (2)FY22 Revenue

FY22 Revenue

FY22 EBIT

902.0 JPY Bn

38.0 JPY Bn

Balance

Cargo & Mail

Mileage, Lifestyle andInfrastructure and others

Maintain good
performance fromprevious ﬁscal year

Take aggressive
challenges in addition
to sustainable growth

FY22 Revenue

208.0 JPY Bn
Full Service Carrier
FY22 EBIT

Cargo & Mail

40.0JPY Bn

FY22 Revenue

FY22 EBIT

242.0JPY Bn 40.0JPY Bn※Revenues of the two consolidated
subsidiaries, ZIPAIR Japan and Spring Japan.
EBIT of the two subsidiaries and any factors
related to the aﬃliated company accounted
for by the equity-method, Jetstar Japan- The Revenue and EBIT by each business area shown above are calculated by a virtual
method; Not showing the actual Revenue and EBIT
- The criteria shown above does not match Air Transport Business Segment or Others※The forecast on the Full-year 2022 Earnings Forecast announced on May 6, 2022 has been rearranged according to the disclosure items on page 10of this ﬁnancial results brieﬁng document.
(1) Mileage, Lifestyle and Infrastructure and others = 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©Japan Airlines, ALL rights reserved.

21

[Reference]
Operation Performance by Geographic Segment(Full Service Carrier)Passenger Revenue(%)

Component Ratio

FY22Q1

Vs. FY19Q1

Revenue Passengers Carried(‘000)

Vs. FY21Q1

FY22Q1

Vs. FY19Q1

Vs. FY21Q1

America245▼38.6%+296.6%+373.4%

Europe60▼69.0%+377.0%▼47.0%+677.9%Asia/Oceania

369▼67.2%+487.7%33%▼50.0%+535.1%China

4%▼84.9%+170.4%China

15▼96.5%+81.6%

Hawaii/Guam

Hawaii/Guam4%▼82.3%+951.0%38▼86.2%+927.1%100%▼52.2%+457.0%728▼70.0%+387.5%

America41%▼32.0%

Europe18%

Asia/Oceania

Total

Total

Load Factor

ASK(MN seat km)
America
EuropeAsia/Oceania

FY22Q1

Vs. FY19Q1

3,261

Total

FY22Q1

Vs. FY19Q1

Vs. FY21Q1+26.0%

America

70.1%

89.4%

22.5%

59.1%

87.7%

11.1%

958

▼52.2%▼9.4%

Europe2,511▼47.6%+71.4%

Asia/Oceania

66.9%

85.2%

19.1%

46

▼94.9%▼17.9%

China

64.7%

88.2%

30.0%

319

▼82.7%+478.5%

Hawaii/Guam

73.5%

86.8%

41.7%

7,097

▼48.4%+35.9%

Total

67.6%

87.3%

19.5%

China
Hawaii/Guam▼22.5%(%)

Vs. FY21Q1

RPK(MN passenger km)

FY22Q1

Vs. FY19Q1

Vs. FY20Q1

America

2,287▼39.2%+293.6%

Europe566▼67.8%+382.9%1,680▼58.9%+499.3%29▼96.3%+77.3%

235▼85.3%+921.3%

4,799▼60.1%+371.1%

Asia/Oceania
China
Hawaii/Guam
Total©Japan Airlines, ALL rights reserved.

22

[Reference]
Fleet Information
End of FY21 (March 31, 2022)
Owned

LeasedTotal 1

End of FY22Q1 (June 30, 2022)

Total 2

Owned

LeasedTotal 1

retiredaircraft
退役済み機材除く
excluded

excluded- Mar/22

Large

Airbus A350-900

11

4

15

15

12

4

16

16

+1

Boeing 777-300ER

13

0 (1)

13

13

13

0 (1)

13

13

0

Boeing 777-300

4

0

4

0

3

0

3

0

0

Boeing 777-200ER

8

0

8

5

6

0

6

5

0

Boeing 777-200

4

0

4

0

2

0

2

0

0

40

4

44

33

36

4

40

34

+1

Boeing 787-9

19

3

22

22

19

3

22

22

0

Boeing 787-8

25

0

25

25

25

0 (1)

25

25

0

Boeing 767-300ER

29

0

29

29

29

0

29

28

▼1

73

3 (1)

76

76

73

3

76

75

▼1

47

12

59

58

48

10

58

58

0

Small-sized Total

47

12

59

58

48

10

58

58

0

Embraer 170 / Embraer 190

32

0

32

32

32

0

32

32

0

De Havilland DHC-8-400CC

5

0

5

5

5

0

5

5

0

ATR42-600 / ATR72-600

12

1

13

13

13

1

14

14

+1

Regional Total

49

1

50

50

50

1

51

51

+1

Full Service Carrier Total

209

20

229

217

207

18

225

218

+1

Boeing 787-8

4

0

4

4

4

0

4

4

0

Boeing 737-800

0

6

6

6

0

6

6

6

0

Large-sized Total
MiddleFull Service Carrier

Middle-sized Total
Small
Regional

LCC

Diﬀ.

Total 2

retired aircraft Total2 of Jun/22
退役済み機材除く

Boeing 737-800

LCC Total
Full Service Carrier + LCC Total

4

6

10

10

4

6

10

10

0

213

26

239

227

211

24

235

228

+1

©Japan Airlines, ALL rights reserved.

23(1) The diﬀerence between Total 1 and Total 2 is retired aircraft as of the end of JuneFly into tomorrow.

Finance & Investor Relations
Japan Airlines©Japan Airlines, ALL rights reserved.

24

Disclaimer
This content contains descriptions of the future expectations, outlooks, objectives and plans etc. Of Japan
Airlines Co., Ltd. (hereafter "the company") and related Group companies (hereafter "the Group").
These are based on information available at the time when these materials were created by the company (or asotherwise speciﬁed), and are created based on the forecasts at such time. These statements were createdbased on certain assumptions. These statements and assumptions include the subjective projections andjudgments of our management, and due to various risks and uncertainties, these may be found to be inaccurate
or unrealized in the future. Therefore, the actual results, earnings and ﬁnancial conditions, etc. of the Groupmay diﬀer from the projections of the company. These risks and uncertainties include, but are not limited to,the economic and social conditions of Japan and other countries and regions, soaring fuel costs, changes in theexchange rates between the yen and the dollar or other currencies, terrorist attacks or wars, infectious disease
outbreaks, and various other risks related to the aviation business. Statements on this content regarding
future information are, as mentioned
above, valid at the time of creation (or as otherwise speciﬁed), and our company has no obligation to ensurethat this information is updated with the latest available information. The information contained in thiscontent is for informational purposes only, and is not intended as a recommendation, solicitation or request forthe purchase of or trade in any securities or ﬁnancial products. Although every eﬀort has been made to ensurethat the information posted on this content regarding the Group is correct, it includes unaudited ﬁnancial
information for which we provide no guarantee of its accuracy, completeness, fairness or reliability. The
Company does not have any responsibility for any damages resulting from the use of this content. It should be
noted that all rights with this content and other copyright of this material belongs to Japan Airlines Co., Ltd.

©Japan Airlines, ALL rights reserved.

25