A Japan Airlines Boeing climbing into a cloudy sky.
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JAL Group Publishes Consolidated Q2 Financial Results

LONDON – Last week, the Japanese carrier group, JAL Group, has published their consolidated second quarter (Q2) financial standings that ends on March 31, 2023 with this particular Q2 being between April 1, 2022 to September 30, 2022.

JAL Group Q2 Results


Adding in the Q2 results, the JAL Group’s revenue for the first half of 2022 has increased to 618.5 billion yen, which is a 112.8% increased compared to the same period in 2021. Alongside the revenue increase, the group’s operating expenses have also gone up to 637.2 billion yen which is a 43.9% increase when compared to the same period in 2021.

The JAL Group’s EBIT for this Q2 period sat at 300 million yen, with a loss attributable to owners of the parent at 2.1 billion yen. Their losses were significantly hampered by the hike-up in fuel prices this year, with their fuel expenses totalling 154.8 billion yen, which is a staggering 162.5% increase when compared to the same period in 2021. Most of which has been the result of the ongoing war in Ukraine.

In terms of passenger revenue for the consolidated financial year (FY), JAL Group’s full service carrier, known as Japan Airlines achieved an overall passenger revenue of 505.8 billion yen, which is a 130.9% increase when compared to 2021’s passenger revenue.

This revenue is broken down as international passenger revenue of 163.2 billion yen, domestic passenger revenue of 208.6 billion yen, cargo and mail revenue of 126.2 billion yen and other revenue of 7.6 billion yen.

For the group’s LCC (low-cost carrier), known as ZIPAIR, their passenger revenue for this quarter stood at 11.5 billion yen, which is a 10.7 billion yen increase when compared to the same period in 2021.

Thankfully the remainder of this FY for the JAL Group should be a lot more positive now that Japan’s travel restrictions due to COVID-19 are being eased, which is enabling the group to begin ramping back up their operations in line with demand, as well as restarting a good chunk of their international services which should then eventually turn back into growth again, like we saw pre-COVID.

This improvement is evident in the group’s future outlook of expecting that they will end up with a profitable EBIT of 80 billion yen with the profit attributable to owners of the parent being 45 billion yen for their full-year financial standings.

This is also in line with their expectation in increased passenger demand during Q3 and Q4 with international passenger demand rising to 50% in Q3 and to 60% in Q4, as well as domestic passenger demand rising to 95% for both Q3 and Q4.

Overall


It is great to see that Japan Airlines and the JAL Group is slowly climbing back up the ladder to its once well-known full profitability, now that the vast majority of the COVID-19 restrictions across Japan are being relaxed.

This will enable the group to ramp back up their operations as well as begin to focus back on their growth measures, alongside the recent sustainability announcements, such as their JAL Carbon Offset initiative that was announced back in July 2022.

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