(Percentage compared to prior year)

[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 Three Months Ended June 30, 2023[IFRS]

Company name

Japan Airlines Co., Ltd

August 1, 2023

Stock Listing

Tokyo Stock Exchange

Code No.

9201

URL: https://www.jal.com

Representative

Yuji Akasaka, President

Contact

Shuei Nishizawa, General Manager, Finance

Phone: +81-3-5460-3121

Scheduled date for filing of Quarterly Report:

August 2, 2023

Scheduled date for dividend payment:

-

Supplementary explanations of the 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 Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)

(1) Consolidated Operating Results (Cumulative)

Profit before

Profit attributable to

Comprehensive

financing and income

Profit before tax

Revenue

owners of parent

income

tax

(Loss in brackets)

(Loss in brackets)

(Loss in brackets)

(Loss in brackets)

Three months ended

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Yen

Yen

Yen

Yen

Yen

June 30, 2023

381,440

41.9

31,383

-

31,897

-

23,063

-

29,164

-

Three months ended

268,896

102.1

(27,602)

-

(28,889)

-

(19,583)

-

(16,036)

-

June 30, 2022

Basic earnings per share

Diluted earnings per share

(Loss in brackets)

Yen

Yen

Three months ended June 30, 2023

52.77

Three months ended June 30, 2022

(44.81)

(Note) 1. Profit before financing and income tax represents an index to monitor, compare and evaluate the JAL Group's performance continuously. Profit before financing and income tax is Profit from which Income tax expense, Interest, and Finance income and expense are deducted.

  1. 2. The figures for the first quarter of FY2022 reflect the finalization of provisional accounting for a business combination in the last fiscal year.

  2. Consolidated Financial Position

Ratio of equity

Equity attributable to

attributable to

Equity per share

Total Assets

Total Equity

owners of the parent

attributable to

owners of the parent

to

owners of the parent

total assets (%)

Millions of Yen

Millions of Yen

Millions of Yen

%

Yen

As of June 30, 2023

2,594,366

871,858

834,513

32.2

1,909.61

As of March 31, 2023

2,520,603

856,957

816,288

32.4

1,867.91

2. Dividends

1st Quarter End

2nd Quarter End

Yen

Yen

Year Ended March 31, 2023

0.00

Year Ending March 31, 2024

Year Ending March 31, 2024

20.00

(Forecast)

(Note)Revisions to the most recently disclosed dividends forecast: None

Dividends per Share

3rd Quarter End

Fiscal Year End

Total

Yen

Yen

Yen

25.00

25.00

-

20.00

40.00

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024

(Percentage compared to prior year)

Revenue

Profit before financing and income tax

Profit attributable to owners of parent

(Loss in brackets)

(Loss in brackets)

Entire Fiscal

Millions of Yen

%

Millions of Yen

%

Millions of Yen

%

Year

1,658,000

20.5

100,000

54.9

55,000

59.8

(Note)Revisions to the most recently disclosed earnings forecast: None

The JAL Group does not conduct forecasts for the consolidated financial results for the first six months of the fiscal year. Please refer to "1. Qualitative Information concerning Financial Results for the First Quarter of FY 2023 (3) Explanations of Forecast of Consolidated Financial Results" in the Attachment.

Notes

  1. Changes in significant consolidated subsidiaries during the three months ended June 30, 2023: None
  2. Changes in accounting policies/changes in accounting estimates
  1. Changes in accounting policies due to revisions in accounting standards under IFRS: None
  2. Changes in accounting policies other than 1): None
  3. Changes in accounting estimates: None
  1. Number of shares issued (common stock)
  1. Total number of shares issued at the end of the period (including treasury shares)

As of June 30, 2023

: 437,143,500

As of March 31, 2023

: 437,143,500

(b) Number of treasury shares at the end of the period

As of June 30, 2023

: 136,321

As of March 31, 2023

: 136,291

(c) Average number of shares outstanding

During the three months ended June 30, 2023 :

437,007,201

During the three months ended June 30, 2022 :

437,007,209

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 statement summary are based on information currently available to the Company and certain assumptions which are regarded as legitimate. However, it does not mean that we guarantee its achievement.

The Company holds a presentation for institutional investors and analysts on August 1, 2023. Documents distributed at the presentation are scheduled to be posted on our website on the same day.

Attachment

CONTENTS

1. Qualitative Information Concerning Financial Results for the First Quarter of FY2023

2

(1)

Explanation of Operating Results

2

(2) Explanation on Financial Position

5

(3)

Explanations of Forecast of Consolidated Financial Results

6

2. Condensed Quarterly Consolidated Financial Statement and Primary Notes

7

(1)

Condensed Quarterly Consolidated Statement of Financial Position

7

(2)

Condensed Quarterly Consolidated Statement of Profit or Loss and Other Comprehensive Income

9

(3)

Condensed Quarterly Consolidated Statement of Changes in Equity

11

(4)

Condensed Quarterly Consolidated Statement of Cash flows

13

(5)

Notes for Condensed Quarterly Consolidated Financial Statements

14

(Reporting Company)

14

(Basis of Preparation)

14

(Going Concern Assumptions)

14

(Revenue)

15

(Segment Information)

17

(Finalization of the Provisional Accounting Treatment for a Business Combination)

17

1

1. Qualitative Information Concerning Financial Results for the First Quarter of FY 2023

  1. Explanation of Operating Results
    The revenue for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023 hereinafter referred as

the "First Quarter Period") increased by 41.9% year on year to 381.4 billion yen, the operating expense increased by 16.5% year on year to 353.0 billion yen, the profit before financing and income tax (hereinafter referred as "EBIT") was a profit of 31.3 billion yen (EBIT loss of 27.6 billion yen in the same period in the previous year). The profit attributable to owners of the parent was 23.0 billion yen (the loss attributable to owners of the parent of 19.5 billion yen in the same period in the previous year).

Consolidated financial results are as follows.

(JPY Bn)

Three months ended

Three months ended

% or points compared to

June 30, 2022

June 30, 2023

prior period

Revenue

268.8

381.4

141.9%

FSC International Passenger

62.4

147.5

236.1%

FSC Domestic Passenger

88.0

122.0

138.6%

FSC Cargo/Mail

65.3

34.3

52.6%

FSC Others

2.6

4.3

163.2%

LCC

3.2

13.3

409.0%

Mileage, Lifestyle and Infrastructure

47.1

59.8

127.0%

Operating Expense

303.1

353.0

116.5%

Fuel

69.8

79.4

113.7%

Excluding Fuel

233.2

273.6

117.3%

Profit or loss before financing and income

(27.6)

31.3

-

tax (EBIT) (Loss in brackets)

EBIT Margin (%)

-

8.2%

-

Profit or loss attributable to

(19.5)

23.0

-

owners of the parent (Loss in brackets)

(Note) 1. Figures have been truncated and percentages are rounded off to the first decimal place.

  1. FSC: Full Service Carrier
  2. LCC are passenger revenues for the consolidated companies of ZIPAIR Tokyo Inc. (ZIPAIR) and SPRING JAPAN Co., Ltd. (SPRING JAPAN)
  3. Profit or loss before financing and income tax is defined as EBIT for the JAL Group. EBIT is calculated as Profit or Loss excluding Income tax expense, Interest, and Finance income and expense.
  4. EBIT Margin=EBIT/Revenue.
  5. The figures for the first quarter of FY2022 reflect the finalization of provisional accounting for a business combination in the last fiscal year.

The COVID-19 pandemic that had a major impact on the JAL Group has changed in terms of its clarification, and is finally coming to its end. International border restrictions have ended, domestic restrictions have been lifted and events have been resumed in various parts of the country. Passenger demand has steadily recovered in line with these developments. We would like to express our deep appreciation to those who supported us during the pandemic.

The JAL Group has announced its "JAL Group Medium-Term Management Plan FY2021-2025 Rolling Plan 2023" on May 2, 2023. The Rolling Plan 2023 has placed ESG strategy as the top strategy to realize the creation of value and growth. The COVID-19 pandemic has highlighted that the movement of people and goods not only creates physical value, but also creates the connections between people and goods. Going forward, we will strive to provide new social value and improve our corporate value by creating various relationships and connections as well as the movement of people and goods.

The JAL Group is engaging in two major management challenges to ensure the sustainability of air transportation. The first is realizing carbon neutrality and the second is human capital management.

To achieve carbon neutrality, in June we signed an agreement with Shell Aviation, Shell's aviation fuel division, to procure SAF (Sustainable Aviation Fuel) at Los Angeles International Airport from 2025. As a result, we expect to achieve our goal of "replacing 1% of all fuel on board with SAF in FY2025". In the same month, we issued our second transition bond to facilitate the smooth implementation of fuel-efficient aircraft.

In terms of human capital management, in April we welcomed approximately 2,000 new employees for the first time in 3 years and resumed mid-career recruitment, in view of the future shortage of human resources, while also keeping the

2

total number of employees at pre-pandemic levels. Going forward, we will promote the diversity of human resources and increased productivity and enhance human capital management that considers human resources as capital to improve our corporate value.

The following is a summary of the JAL Group's operating results for the first quarter by business domain.

Full Service Carrier Business Domain

For international passengers, with the end of border restrictions in Japan and the resumption of free travel, we are ready to grow to a business scale greater than pre-pandemic levels. The passenger number has recovered steadily to about 65% of pre-pandemic levels, mainly due to strong inbound demand. Demand from Japan, which had been slower to recover than inbound demand, is gradually recovering due to the change of classification regarding the COVID-19 pandemic, and steady recovery is expected going forward. In addition, we have announced a nonstop service on the Haneda - Doha route, starting in the summer schedule of FY2024.

For domestic passengers, we are already providing customers with supply at pre-pandemic levels, as restrictions on movements have been lifted and socioeconomic activities have resumed. Through the shift to a simpler fare system, we have achieved both the ease of use for our customers and higher unit prices.

For the cargo business, while the tightness of global supply and demand has been resolved, we have focused on the transportation of high value-added goods such as pharmaceuticals through our good transportation quality, as well as maximizing volume particularly between Asia and North America, by utilizing both our own and other companies' supplies. Through these efforts, we have maintained revenue higher than pre-pandemic levels.

LCC Business Domain

ZIPAIR - a LCC for medium to long-haul international flights, started service on the San Francisco route in June as well as the Manila route in July, and is showing steady growth. It has performed strongly with operating profit margins close to 15%, achieved through high rates of aircraft utilization and increased seat number. The three LCCs with different characteristics, including SPRING JAPAN which targets routes in China, and Jetstar Japan Co., Ltd. (Jetstar Japan) which mainly operates domestic flights, will strive to build a network based at Narita Airport, aiming to create a new flow of people, including young people and families.

Mileage, Infrastructure and Others Business Domain

In May, we opened an online shopping mall (JAL Mall) to improve the mileage's ease of use by developing special products through synergies with JALUX Inc. (JALUX). In this business area, we will continue to create connections between people and goods to generate new sources of revenue and new air transport demand, finally leading to the expansion of revenues in the airline business.

Through these businesses, we will promote a company-wide ESG strategy and strive toward medium to long-term growth.

3

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Japan Airlines Co. Ltd. published this content on 01 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2023 07:53:09 UTC.