[REFERENCE TRANSLATION]
Please note that this translation is to be used solely as reference and the financial statements in this material are unaudited.
In case of any discrepancy between this translation and the Japanese original, the latter shall prevail.

Consolidated Financial Results for the Six Months Ended September 30, 2019 (Japanese GAAP)
October 31, 2019

Company name
Japan Airlines Co., Ltd
Stock Listing
Tokyo Stock Exchange
Code No.
9201
URL: http://www.jal.com
Representative
Yuji Akasaka, President
Contact
Yuichiro Kito, General Manager, FinancePhone: +81-3-5460-3121
Scheduled date for filing of quarterly report:
November 1, 2019
Scheduled date for dividend payment:
December 3, 2019
Supplementary explanations of quarterly financial results:
Yes
Presentation for the quarterly financial results:
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen unless otherwise indicated)

1. Consolidated Financial Results for the Six Months Ended September 30, 2019(April 1, 2019 to September 30, 2019)(1) Consolidated Operating Results (Cumulative)
Operating Revenue

Operating Profit

Profit attributable toowners of parent

Ordinary Profit

Millions of Yen%

Millions of Yen

Six months ended September 30, 2019759,844

1.3

81,316(16.0)%

Millions of Yen

82,550(12.5)%

Millions of Yen

51,203(30.2)%

Six months ended September 30, 2018

750,179

8.4

96,831(2.3)

94,289(3.5)

73,398(5.9)*Comprehensive income for the period April 1, 2019 - September 30, 2019: 49,146 Millions of Yen (△49.5%) , April 1, 2018 - September 30, 2018: 97,279 Millions of Yen (9.5%)

Earnings per share

Diluted earnings per share

Yen

Yen

147.87210.21-

Six months ended September 30, 2019
Six months ended September 30, 2018

(2) Consolidated Financial Position

As of September 30, 2019
As of March 31, 2019

Total Assets

Net Assets

Shareholder’s equity
ratio (%)

Shareholder’s equity
Per share

Millions of Yen

Millions of Yen

1,928,864
2,030,328

1,208,146
1,200,135

%
60.8
57.4

3,417.86
3,340.15

Yen(Reference)Shareholder’s equity: Six months ended September 30, 2019: 1,172,355 Millions of Yen, Year ended March 31, 2019: 1,165,133Millions of Yen

2.

Dividends
Dividends per Share
1st Quarter End

2nd Quarter End

3rd Quarter End

Fiscal Year End

Yen

Yen

Yen

Yen

Total
Yen

Year Ended March 31, 2019

-

55.00

-

55.00

110.00Year Ending March 31, 2020
Year Ending March 31, 2020 (Forecast)

-

55.00
-

55.00

110.00Note: Revisions to the most recently disclosed dividends forecast: None

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2020
Operating Profit

Operating Revenue
EntireFiscal Year

Millions of Yen

1,516,000%

1.9

Ordinary Profit

Millions of Yen%

Millions of Yen

170,000(3.5)

171,000

Note: Revisions to the most recently disclosed earnings forecasts: Yes(Percentage compared to prior year)
Profit attributable toowners of parent%

3.4

Millions of Yen
144,000

Earnings
per share%Yen(24.4)

329.21

Notes(1) Changes in significant consolidated subsidiaries during the six months ended September 30, 2019: None

(2) Application of accounting methods which are exceptional for quarterly consolidated financial statements: None

(3) Changes in accounting policies, accounting estimates and restatement of corrections
1) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: None
2) Changes in accounting policies other than 1): Yes
3) Changes in accounting estimates: Yes
4) Restatement of corrections: None
(4) Number of shares issued (common stock)(a) Total number of shares issued at the end of the period (including treasury stock)
As of September 30, 2019 : 349,028,700
As of March 31, 2019
: 349,028,700(b) Number of treasury stock at the end of the period
As of September 30, 2019 : 6,019,978
As of March 31, 2019:
201,957(c) Average number of shares outstanding
During the six months ended September 30, 2019 : 346,278,420
During the six months ended September 30, 2018 : 349,160,043

Indication of quarterly review procedure implementation status
This document is unaudited by certificated public accountants or audit firms.

Explanation for appropriate use of forecasts and other notes
Remarks on the description on future forecast
The forward-looking statements such as operational forecasts contained in this statements summary are based on
information currently available to the Company and certain assumptions which are regarded as legitimate. Actual results may
differ from such forward-looking statements for a variety of reasons. Please refer to “1.Qualitative Information concerning
Financial Results for the Second Quarter of FY2019” (2) Explanations of Forecast of Consolidated Financial Results” in the
Attachment for the assumptions used and other notes.
* The Company will hold a presentation for institutional investors and analysts on October 31, 2019. Documents distributed at thepresentation are scheduled to be posted on our website on the same day.

Attachment
CONTENTS
1.

Qualitative Information concerning Financial Results for the Second Quarter of FY2019 ………….…….….

2……………………..………….….….………….….….….….….….

2(2) Explanations of Forecast of Consolidated Financial Results……………………………………....….…....

6

Consolidated Financial Statements with Some Notes……………………………………………………….….

7(1) Consolidated Balance Sheets …………………………………………………………………….…………

7(2) Consolidated Statements of Income and Comprehensive Income …...…………………………………….

9(3) Consolidated Statement of Cash Flows……………....…………………………………….….….….….….

10(4) Notes for Consolidated Financial Statements ………………..………………………………………….….

11

Going Concern Assumptions ……………………..………….….…..….….………....….…..……...….…..

11

Consolidated Statement of Cash Flows…………..………….….…..….….………....….…..……...….…..

11

Explanatory Note in case of Remarkable Changes in Shareholders’ Equity……………………...………..

12

Changes in Accounting Policies………………………...…………………………....……………....……

12

Changes in Accounting Estimates...……………………...………………………....……………....……

12

Segment Information…..…………………………….....……………………………………...…………....

13

Significant Subsequent Event …..………………………………………………………………………….

14(1) Explanation of Operating Results

2.

1

1. Qualitative Information concerning Financial Results for the Second Quarter of FY2019
The JAL Group has taken company-wide prevention measures and reconstructed its safety management system after
receiving the Business Improvement Order by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) last year
related to pilots’ alcoholic matters. However, we were unable to prevent inappropriate alcohol-related cases and as the result,
JAL was issued a second Business Improvement Order on October 8, 2019.
As an air transportation company, in which safety is essential for its business, it is extremely serious and critical that
JAL undermined the trust of customers and society, for which we sincerely regret with apology.
The JAL Group will, with every one of us altogether, to re-scrutinize the root problem of the alcohol-related matters andits preventive measures. It will determinedly advance a fundamental mindset reform and alcohol control in order to achieve to“rebuild safety and sense of security” and to “restore public trust and increase corporate value.”(1) Explanation of Operating Results
The consolidated operating revenue increased by 1.3% year on year to 759.8 billion yen, the operating expense
increased by 3.9 % year on year to 678.5 billion yen, the operating profit decreased by 16.0 % year on year to 81.3 billion
yen and the ordinary profit decreased by 12.5 % year on year to 82.5 billion yen. The profit attributable to owners of parent
for the six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019 hereinafter referred as the “Second
Quarter Period”) was 51.2 billion yen, down 30.2% year on year.
.

Six months ended

Six months ended% or points compared to

September 30, 2018

September 30, 2019prior period(JPY Bn)
750.1

759.8

101.3%

International Passenger

269.2

266.0

98.8%

Domestic Passenger

268.1

276.8

103.3%

Cargo / Mail

49.7

45.1

90.7%

Other

163.0

171.7

105.4%

653.3

678.5

103.9%

Fuel

125.3

127.7

101.9%

Excluding Fuel

527.9

550.7

104.3%

Operating Profit

96.8

81.3

84.0%

Operating Profit Margin (%)

12.9

10.7

(2.2)

Ordinary Profit

94.2

82.5

87.5%

Profit attributable to owners of parent

73.3

51.2

69.8%

Operating Revenue

Operating Expense

Note: Figures have been truncated and percentages are rounded off to the first decimal place.

To summarize the business environment in the Second Quarter Period, amid rising uncertainties from U.S.-China
trade frictions and other factors in the global economy, the Japanese economy made a moderate recovery in general. For the
air transportation demand, while the international passenger demand was not very strong, the domestic passenger demandremained strong backed by the 10-consecutive-day holidays of so-called Golden Week due to the new Reiwa era change.

2International Cargo demand was slack globally.
Crude oil prices, which affect our fuel costs, international passenger and international cargo revenues, remained lessfluctuated in general, although impacted by geopolitical risks from uncertain international affairs. The JAL Group will do its
best to mitigate the negative impacts of oil price volatility on its financial performance through the collection of fuelsurcharge or appropriate hedging. Also, the JAL Group will continue to closely monitor the impacts of oil price on economic
trends and the Group’s financial performance.

To “expand networks” and “innovate better products and services”, the JAL Group will take actions to improvecustomer service through new route inauguration, cabin configuration optimization, introduction of new aircraft andpartnerships with partner airlines.
On September 2, MLIT disclosed additional slot allocations at Tokyo (Haneda) International Airport in accordancewith its capacity expansion in 2020. Of the countries with increased slot allocation, JAL received all of the slots that it had
requested. We will fully utilize those additional slots, allocated through the understanding of many parties concerned. Also,
we will maintain and expand flights to/from Narita as well and create the optimal network out of Haneda and Narita airports
in accordance with their respective roles.
On September 1, JAL launched operations of the state-of-the-art Airbus A350-900 starting from the Tokyo (Haneda)= Fukuoka route, and will progressively expand services to other major destinations in Japan. On October 27, JAL started tooperate Boeing 787-8 as well. The aircraft’s new seats, personal monitors and power outlets will improve customer services
and comfort.
JAL won the World’s Best Economy Class Award in the World Airline Awards by SKYTRAX in June 2019. It also
won the award for the Best Economy Class Airline Seat for the fourth time for three consecutive years. Further, JAL wasnamed Japan’s best airline for the third consecutive year and 3 more awards including the Best First Class in Asia in the2019 TripAdvisor® Travelers’ Choice™ awards for Airlines were given. The JAL Group is aggressively challenging toward“the world’s most and preferred and valued airline” to provide comfortable air travel to every customer.

In international passenger operations, the Japan-outbound leisure demand showed robust growth, while the businessdemand from Japan weakened along with the global economic slowdown. In addition, the supply-demand imbalance became
clear especially on the European routes due to oversupply by competitors, and the declining demand was observed on the
Hong Kong and Korean routes due to political uncertainty or the worsened relationship between Japan and South Korea.
On the other hand, with the launches of the Tokyo (Narita)=Seattle route and Tokyo (Haneda)=Manila route last fiscal year
and cabin configuration optimization to meet demand, the available seat kilometers (ASK) increased by 2.5% year on year.
The passenger traffic rose by 0.5 % year on year, the revenue passenger kilometers (RPK) grew by 0.9 % year on year, andthe load factor became 81.1%.
In route operations, JAL disclosed the launch of the Tokyo (Narita)=Vladivostok route from February 28, 2020, andstrengthened and expanded partnerships with other airlines such as the expansion of codeshare flights with Garuda Indonesia(from May 8, 2019), Cathay Dragon (from May 29, 2019) and Xiamen Airlines (from June 3, 2019). To promote joint
businesses with partner airlines, JAL disclosed an application for antitrust immunity with Malaysia Airlines on May 27,
2019.
For the products and services, at Narita airport, JAL opened the renovated JAL First class lounges on April 1 and
Sakura Lounge on August 9. JAL partnered with Didi Chuxing of China and launched the JAL×DiDi Airport Pickup andTaxi Arrangement Campaign on September 1. On the Hawaii routes, the special painted-aircraft of the most popular3Japanese pop idol group, the “ARASHI HAWAII JET,” has been in operation from May 22 to strengthen our competitive
advantage.
In international cargo operations, Japan-outbound demand slowed down rapidly along with U.S.-China trade frictions.
As a result, cargo revenue decreased by 8.9% year on year.

In domestic passenger operations, both leisure and business demand remained strong especially on the Okinawa
routes. Although it was affected by the typhoon, together with competitive products and services, JAL’s extra flights on
high-demand routes such as Tokyo (Haneda) = Okinawa (Naha) and Tokyo (Haneda) = Hokkaido (New-Chitose) during
peak seasons further increased the available seat kilometers (ASK) by 1.7%, the passenger traffic grew by 3.4% year on year,
increased the revenue passenger kilometers (RPK) by 4.4%, and the load factor reached to 74.0%.
In route operations, JAL strengthened and expanded partnerships with other airlines such as codesharing with
Amakusa Airlines and Fuji Dream Airlines.
For the products and services, the JAL Group redesigned its domestic reservation webpage on May 14 and improved
its smartphone app on July 22 to enable passengers to purchase a domestic ticket more smoothly. Further, the JAL Groupstarted to accept reservations and purchases 330 days prior to departure from the reservation date of September 10. The
state-of-the-art Airbus A350-900 was put into service on the Tokyo (Haneda) = Fukuoka route from September 1, the Boeing
787-8 aircraft started to be in service on the Tokyo (Haneda) = Osaka (Itami) route from October 27.

For the new business domains, the JAL Group is working to generate innovations for new products, services andbusinesses by combining its strong human resources and advanced technologies. The medium- and long-haul international
low cost carrier, ZIPAIR Tokyo, was granted an Air Operator Certificate on July 5. Its preparation for launching in 2020 has
been advancing smoothly. For rapidly growing e-commerce business, JAL established “JAL Hongyuan Co., Ltd. (JAL
Hongyuan)” on July 1. On September 24, JAL Business Aviation Co., Ltd. completed registration as a travel businessprovider, and started services such as arrangements of charter flights, operational support of business jets and arrangement ofmaintenance services.
For the use of technologies, initiatives at “JAL Innovation Lab” advanced various projects such as demonstration of
an avatar robot at Haneda Airport for better customer guidance and services and better working environments at the sametime, or research, development and commercial use of next-generation services using next-generation mobile
communication standard “5G” and IoT in collaboration with “KDDI DIGITAL GATE” produced by KDDI Corporation.

The JAL group aims to fulfill its social mission as a public transportation provider, we are working to revitalize
regional communities and increase the number of world visitors to Japan. In the Second Quarter Period, natural disasters
such as the 2019 Yamagata earthquake and Typhoon Faxai occurred in various regions. The JAL group supported affectedareas by providing urgent carriage of relief supplies and implementation of tourism support campaigns. On July
3,“Hokkaido Airport Group,” a consortium in which JAL participates, was given a first refusal right in the “Hokkaido
Bundled 7 Airport Concession Project” by MLIT, Asahikawa City, Obihiro City, and Hokkaido Government.
On July 23, we released a new uniform design to be used from April 2020. The new design has the quality andfunctions necessary for safe and secure services. It also follows the Tokyo 2020 Olympic and Paralympic Games Sustainable
Sourcing Code.

For financial strategies, aiming to improve capital efficiency and stable shareholder return, JAL completed therepurchase of 5,818,100 shares, equivalent for 20 billion yen, by September 20. The cancellation of all repurchased shares

4was resolved at the board meeting held on October 23. In addition, the board meeting held on October 31, resolved torepurchase up to 8 million shares or 20 billion yen of the Company's common stock and to cancel all of them. On September
13, in order to mitigate future financial risks, JAL injected 82.7 billion yen to the Corporate Pension Fund and reduced net
defined benefit liability. On May 17, 2019, JAL’s credit rating outlook was improved to A- (positive) from A- (stable) by
Rating and Investment Information, Inc. (R&I). We will continue to establish a stable financial structure with high capitalefficiency at the same time.

Based on the “FY2017 to FY2020 JAL Group Medium Term Management Plan – Rolling Plan 2019,” the JAL groupwill take firm actions to prepare for the airport capacity expansion at Tokyo metropolitan airports in 2020. The JAL groupwill contribute to achieving the government target of 40 million world visitors to Japan annually and the success of the
Olympic and Paralympic Games Tokyo 2020. Further, the JAL group will aggressively take measures toward new value
creation, human resource development and solution of social issues.

Financial results of each segment are as follows.

Air Transportation Segment
The operating revenue increased by 1.0% year on year to 689.8 billion yen and the operating profit decreased by 17.7 %year on year to 72.8 billion yen. (The operating revenue and the operating profit are before elimination of transactions between
segments.)
The international passenger revenue was 266.0 billion yen, or down 1.2 % year on year.
The domestic passenger revenue was 276.8 billion yen, or up 3.3 % year on year.
The cargo and mail revenue was 45.1 billion yen, or down 9.3 % year on year.

5Consolidated Traffic Results
Three months ended

Three months ended

September 30, 2018

September 30, 2019

4,605,384

4,582,231

99.5％

22,572,916

22,768,481

100.9％

27,399,486

28,072,233

102.5％

Revenue passenger-load factor (%)

82.4

81.1

(1.3)

Revenue cargo ton-km (thousands)

1,233,546

1,212,362

98.3％

114,650

82,852

72.3％

17,408,061

18,006,267

103.4％

13,037,001

13,609,444

104.4％

18,076,780

18,387,206

101.7％

Revenue passenger-load factor (%)

72.1

74.0

1.9

Revenue cargo ton-km (thousands)

173,812

165,648

95.3％

Mail ton-km (thousands)

12,141

12,06899.4％

22,013,445

22,588,498

102.6％

35,609,917

36,377,926

102.2％

45,476,267

46,459,440

102.2％

Revenue passenger-load factor (%)

78.3

78.3

(0.0)

Revenue cargo ton-km (thousands)

1,407,358

1,378,010

97.9％

126,791

94,921

74.9％% or points compared toprior period

INTERNATIONAL

Revenue passengers carried(number of passengers)
Revenue passenger km(1,000 passenger-km)
Available seat km (thousands)

Mail ton-km (thousands)
DOMESTIC
Revenue passengers carried(number of passengers)
Revenue passenger-km(1,000 passenger-km)
Available seat km (thousands)

TOTAL
Revenue passengers carried(number of passengers)
Revenue passenger-km(1,000 passenger-km)
Available seat km (thousands)

Mail ton km (thousands)

1． Revenue Passenger Kilometers (RPK) is the number of fare-paying passengers multiplied by the distance flown (km).
Available Seat Kilometers (ASK) is the number of available seats multiplied by the distance flown (km).
Revenue Cargo Ton Kilometers (RCTK) is the amount of cargo (ton) transported multiplied by the distance flown (km).
2. The distance flown between two points, used for calculations of RPK, ASK and RCTK above is based on the great-circle distance andaccording to statistical data from IATA (International Air Transport Association) and ICAO (International Civil Aviation Organization).
3. International operations: Japan Airlines Co., Ltd.
Domestic operations: Japan Airlines Co., Ltd., Japan Transocean Air Co., Ltd., Japan Air Commuter Co., Ltd., J-Air Co., Ltd.,
Ryukyu Air Commuter Co., Ltd., and Hokkaido Air System Co., Ltd.,
4. Figures have been truncated and percentages are rounded off to the first decimal place.

6

(2) Explanations of Forecast of Consolidated Financial Resultsa.

Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2020
OperatingOperating

Ordinary

Profit attributable toEarnings per

Revenue

ProfitProfitowners of parent

shareMillions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Yen

Previous Forecast（A）

1,563,000

170,000

171,000

114,000

326.81（B）

1,516,000

170,000

171,000

114,000

329.21▲47,000

－

－

－

－

▲3.0

－

－

－

－

1,487,261

176,160

165,360

150,807432.10New Forecast

Change（B-A）
Change（%）Ref.) Consolidated Financial Results of the
Fiscal Year Ended March 31, 2019b. Reasons for Revisions of Financial Forecast for the Fiscal Year Ending March 31, 2020
We have revised market preconditions to reflect the recent market as follows.

Exchange Rate

Singapore Kerosene

Dubai Crude Oil(JPY/USD)(USD/BBL)(USD/BBL)

115.0

90.0

70.0

Previous Forecast

109.6
New Forecast

76.8

nd

nd

(2 half:110.0)(2 half:75.0)

62.1
nd

(2 half:59.0)

As shown in the table above, we have revised the full-year consolidated revenue forecast in our earnings forecast for
the fiscal year ending March 2020.
Full-year consolidated revenue is expected to decrease by 47.0 billion yen from the previously announced forecast,reflecting changes in fuel price and foreign exchange rate assumptions and the first-half results and the latest demand
outlook for the second-half. On the other hand, the full-year consolidated operating profit, consolidated ordinary profit andnet profit belonging to shareholders has not been revised from the previously announced forecast.
It is difficult to foresee the future trends of the international passenger demand. Although the outlook for revenue
from international passenger business is not good, the JAL group will strives to achieve the expected profits byimplementing company-wide measures to improve profitability, mainly by reducing cost, and responds to the revenue
decline risk.
Our shareholder return policy for the fiscal year ending March 31, 2020 and the following years is as follows:
In order to maintain a stable dividend level despite the upcoming effective tax rate increase, JAL will decide thedividend per share level, considering its continuity, stability and predictability with reference to a payout ratio of
approximately 35%. In addition, JAL will proactively and flexibly consider share repurchases, considering its financial
position and other factors. As a result, JAL seeks to achieve a total payout ratio, which combines the total dividends paid out
and the total amounts of the share repurchases, of an approximately 35% to 50% range through appropriately sharing
periodic profits and allocating capitals among all of its stakeholders.
At the same time, JAL continuously strives to improve capital efficiency through monitoring a total return on equity
ratio, which is calculated by dividing the sum of total dividends paid out and share repurchases by shareholders’ equity. JAL
makes its efforts to maintain this ratio at approximately 3% or above.

7

2. Consolidated Financial Statements with Some Notes(1) Consolidated Balance Sheets as of March 31, 2019 and as of September 30, 2019
FY2018
As of March 31, 2019
(Assets)
Current assets
Cash and deposits
Notes and operating account receivable
Securities
Flight equipment spare parts and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Tangible fixed assets, net
Flight equipment
Other tangible fixed assets
Total tangible fixed assets
Intangible assets
Investments and other assets
Total non-current assets
Total assets(Liabilities)
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable-installment purchase
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Long-term accounts payable-installment purchase
Provision
Net defined benefit liability
Other non-current liabilities
Total non-current liabilities
Total liabilities(Net Assets)
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

8(Millions of Yen)FY2019As of September 30, 2019

462,064
153,11260,00021,92965,095(661)
761,539

365,988
159,993
30,00025,842
66,895(638)
648,081733,961
195,254929,216

751,913
209,802961,716

92,255247,317
1,268,788
2,030,328

93,046226,020
1,280,783
1,928,864

185,65065
13,287
2,461
190
252,743454,399

177,79035
11,5731,120
193
244,061434,775

50,00073,524
2,504
312
5,936
212,672
30,842375,793
830,192

50,00068,649
2,118
212
5,913
125,015
34,034285,943
720,718

181,352
183,050
822,554(535)
1,186,421

181,352
183,049854,572(20,534)
1,198,439

20,371
1,837
99(43,596)(21,287)
35,001

20,232(5,407)(148)(40,760)(26,083)
35,7901,200,135
2,030,328

1,208,146
1,928,864

(2) Consolidated Statement of Income and Comprehensive Income
Three months ended
September 30, 2018
750,179
537,818
212,361
115,530
96,831(Millions of Yen)
Three months ended
September 30, 2019759,844557,995
201,848
120,532
81,316

1,355
1,304
2,885
5,545

1,961
2,078
1,284
5,324

470
6,755
860
8,086
94,289

339
1,387
1,781
581
4,090
82,550

72
72

1,025
194
1,220

16
779
796

1,377
1,151
1,025
1,411
4,966

Profit before income taxes

93,56578,803

Income taxes

17,26824,816

ProfitBreakdown
Profit attributable to owners of the parent
Profit attributable to non-controlling interests

76,29653,98773,3982,898

51,203
2,784

6,778
11,146
98
2,528
430

(111)
(6,804)
(264)
2,840
(501)

20,982
97,279(4,841)49,146

94,4092,869

46,407
2,739

Operating revenue
Operating cost
Operating gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expense
Loss on sales and disposal of flight equipment
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income for aircraft purchase
Other
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on valuation of investment securities
Loss on reduction of aircraft
Other
Total extraordinary losses

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
BreakdownComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests9(3) Consolidated Statement of Cash Flows(Millions of Yen)
Six months ended
September 30, 2018

Six months ended
September 30, 2019

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on sales and disposal of noncurrent assets andimpairment loss
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using equity
methodDecrease (increase) in notes and operating account receivable-tradeDecrease (increase) in supplies
Increase (decrease) in operating accounts payable-trade93,56561,84878,80367,865

4,695

2,900

(295)
(1,355)(83,827)(1,961)

470
(281)

339
(352)

(1,304)(2,078)(8,344)(6,904)(1,254)
5,981(3,899)(7,794)

Other, net

10,112

6,589

Subtotal

163,838

49,681

1,804
(447)

2,533
(333)

Income taxes paid

(14,903)(23,144)

Net cash provided by (used in) operating activities

150,291

28,736(125,456)(108,162)

4,603(3,024)

1,375(1,799)Proceeds from sales and redemption of investment securities
Payments of loans receivable

22
(124)

324
(105)

Collection of loans receivable
Other, net

360
5,595

338
1,569

(118,024)(106,457)

Net increase (decrease) in short-term loans payable(3,131)(29)

Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Purchase of treasury shares
Repayments of lease obligations－(11,823)
19,859(10,024)(1,904)255(6,843)(20,006)(717)(20,187)(3,534)236(30,510)(19,180)(2,384)426(48,480)

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investment securities

Net cash provided by (used in) investing activities
Cash flows from financing activities

Cash dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from exclusionof subsidiaries from consolidation
Cash and cash equivalents at end of period

10

626

125

2,383
448,842(126,075)
522,064(44)－

451,181395,988

(4) Notes for Consolidated Financial Statements
Going Concern Assumptions
None

Consolidated Statement of Cash Flows*1 Relationship between the amount of accounts that are in the consolidated balance sheet and cash and cash equivalents(Millions of Yen)FY2018
April 1, 2018 toSeptember 30, 2018
Cash and deposits

FY2019April 1, 2019 to
September 30, 2019

386,181

365,988

Securities

65,00030,000Cash and cash equivalents

451,181395,988

Explanatory Note in case of Remarkable Changes in Shareholders’ Equity
The Company resolved to repurchase shares at the meeting of the Board of Directors held on April 26, 2019, in
accordance with the Companies Act Article 156, Paragraph 1, applied by replacement under Article 165, Paragraph 3 of thesame Act, and repurchased shares. As a result, treasury stock increased by 19,999 million yen in the six months ofconsolidated financial results.
As a result of the above, the treasury stock was 20,534 million yen at the end of the six months of consolidated
financial statements.

Changes in Accounting Policies（Change in the definition of cash and cash equivalents in the Consolidated Statement of Cash Flows – Summary）
Up till now, time deposits with a maturity of more than three months were not included within cash equivalents.
However, from this First Quarter Period, time deposits with a maturity of up to one year will be included.
This is because we determined that by including these time deposits within cash equivalents, we would be able toreport cash flows more appropriately, given the fact that time deposits with maturities ranging from three months to one
year were actually operated together with time deposits with shorter terms of three months or less in recent years, andbased on this situation, internal regulations were clarified from this First Quarter Period.
This change in the accounting policy has been retroactively applied. The amount after retroactive application isindicated also in the previous Second Quarter Period.
As a result, Cash flows from investing activities decreased by 28,364 million yen, Net increase (decrease) in cash andcash equivalents decreased by 28,394 million yen and Cash and cash equivalents at end of period increased by 237,576
million yen in the Second Quarter Period.

Changes in the Accounting Estimates(Change in duration)
The JAL Group has improved its accounting system to reflect more properly a durable period of each asset such asengines and cabin interiors of some aircrafts. As a result, the estimated useful lives of these assets have been changed since
the First Quarter Period. Accordingly, the operating profit decreased by 5,207 million yen, and the ordinary profit and the
profit before income taxes decreased by 3,654 million yen in the Second Quarter Period.

11Its impact on the segment is shown in the “Segment Information”.

Segment Information, etc.
Segment informationa. Consolidated financial results for the Second quarter of FY2018 (April 1, 2018 to September 30, 2018)
1) Information concerning amount of operating revenue and profits or losses by reportable segment（millions of yen）
Reportable segment

Others(Note)1

Air transportation

Total

Consolidated
Statement(Note) 3

Adjustment(Note) 2

Operating revenue
1. Sales to external619,262

130,916

750,179－

750,179

2. Intersegment

63,625

17,33680,962(80,962)－

682,888

148,253

831,142(80,962)

750,179

88,556

8,281

96,837(6)

96,831

Total
Segment profit(Note) 1. “Others” refer to business segments that are not included in the reportable segment, such as travel services, etc.
2. Adjustment includes intersegment elimination.
3. Segment profit has been adjusted with operating profit on the Consolidated Statement of Income and Comprehensive Income.

b. Consolidated financial results for the Second quarter of FY2019 (April 1, 2019 to September 30, 2019)1) Information concerning amount of operating revenue and profits or losses by reportable segment（millions of yen）
Reportable segment

Others(Note) 1

Total

Consolidated
Statement(Note) 3

Adjustment(Note) 2

Air transportation
Operating revenue
1. Sales to external

626,773

133,070

759,844－759,844

2. Intersegment

63,06818,393

81,462(81,462)－

689,841

151,464

841,306(81,462)

759,844

72,8408,490

81,331(14)

81,316

Total
Segment profit(Note) 1. “Others” refer to business segments that are not included in the reportable segment, such as travel services, etc.
2. Adjustment includes intersegment elimination.
3. Segment profit has been adjusted with operating profit on the Consolidated Statement of Income and Comprehensive Income.

2) Information regarding changes to reported segments(Change in duration)
As described in "Changes in the Accounting Estimates", the JAL Group has improved its accounting system to reflect
more properly a durable period of each asset such as engines and cabin interiors of some aircrafts. As a result, theestimated useful lives of these assets have been changed since the First Quarter Period. Accordingly, the segment profit
decreased by 5,207 million yen in the Second Quarter Period.

12(Significant Subsequent Event)
Cancellation of treasure stock
The Company resolved to cancel treasury stock at the meeting of the Board of Directors held on October 23, 2019 inaccordance with the Companies Act Article 178.

1. Overview of cancellation of treasury stock(1) Type of shares to be retired: Common shares of JAL(2) Number of shares to be retired: 5,818,100 shares （1.67% of total number of issued shares）(3) Scheduled date of cancellation: November 8, 2019

2. Total number of issued shares after cancellation above will be 343,210,600 shares.

Share repurchase and Cancellation of treasure stock
The Company resolved at the meeting of the Board of Directors held on October 31, 2019 the repurchase of shares of
its common stock pursuant to Paragraph 1, Article 156 of Companies Act, as applied pursuant to Paragraph 3, Article
165 of the Companies Act, and has resolved to cancel treasury stock pursuant to Article 178 of the Companies Act.

1. Reason for the share repurchases
To increase capital efficiency and improve returns to shareholders

2. Content of acquisition(1) Type of shares acquired: Common shares of JAL(2) Total number of shares acquired: 8 million shares (maximum)
Percentage against total number of issued shares (excluding own shares): 2.3%
(3) Total price of shares acquired: 20 billion yen (maximum)(4) Period of acquisition: November 1, 2019 to February 29, 2020

3. Overview of cancellation of treasury stock(1) Type of shares to be retired: Common shares of JAL(2) Number of shares to be retired: Total number of treasury stock acquired in 2 above(3) Scheduled date of cancellation: March 13, 202013