The JAL Group has announced its consolidated financial results for the six-month period ended September 30, 2023.
Notably, passenger demand exceeded projected expectations, with strong international inbound movements. This was set against a backdrop of increasingly severe external factors, including a weak yen, high fuel costs and the general global instability.
A Positive Start to the Second Quarter
The JAL Group’s performance in the second quarter surpassed initial expectations, building upon the positive trend witnessed in the first quarter.
Notably, there was a surge in inbound international passenger demand, along with promising signs of recovery in outbound business demand originating from Japan.
Additionally, domestic passenger demand has rebounded impressively, reaching pre-pandemic levels, especially in the context of tourism.
These developments collectively indicate a steady and promising recovery in passenger demand for the JAL Group.
However, the JAL Group operates in an environment that’s becoming increasingly severe, marked by a weak yen, high fuel prices, and unstable global conditions.
These challenges could pose obstacles in the path to success, but the JAL Group has shown resilience and adaptability in overcoming them.
Financial Growth and Stability
In the face of these challenges, the JAL Group has displayed sound financial growth and stability. Let’s delve into the details:
Full Service Carrier Business Domain
International Passenger Business
The JAL Group managed to effectively capture the recovering demand in the international passenger business. Passenger numbers are steadily increasing and have reached approximately 67% compared to 2019. Passenger revenue has also seen a substantial boost, reaching approximately 115%.
Domestic Passenger Business
The JAL Group’s proactive approach, including demand acquisition through competitive pricing strategies, has been successful.
Passenger numbers for domestic flights are steadily recovering and have reached approximately 90% compared to 2019. Passenger revenue has surged to approximately 96%.
Cargo and Mail Business
In the international cargo business, the JAL Group has exceeded expectations. Transportation volume reached approximately 106% compared to 2019, despite the challenging market conditions. Notably, the unit price increased to approximately 160%, leading to revenue growth of around 170%.
LCC Business Domain
The JAL Group’s low-cost subsidiary airline, ZIPAIR, has expanded its routes and witnessed significant growth. It started service on the San Francisco route in June and the Manila route in July.
The cumulative number of passengers exceeded one million in September, with passenger numbers surging to approximately 3.3 times compared to the previous year.
Furthermore, Spring Japan, another subsidiary, achieved a remarkable year-on-year increase in passenger numbers by approximately 1.9 times.
Since July, it has been operating three daily flights to China. This strategy has led to positive profitability, with an EBIT of 2.7 billion yen.
Mileage, Infrastructure, and Other Business
The JAL Group’s revenue in this segment has surged by approximately 1.2 times compared to the previous year.
The introduction of “Award Ticket PLUS,” which allows customers to book award ticket reservations with miles even during busy periods, has been a hit since its launch for domestic flights in April.
The Group aims to further enhance the ease and convenience of earning and using miles, and they will continue to focus on ensuring the adequacy of airport ground handling services and expanding the number of airport handling contracts with overseas airlines.
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