Record first quarter performance for Japan Airlines

posted on 3rd August 2018 by Justin Burns
Record first quarter performance for Japan Airlines

Japan Airlines (JAL) has reported that its operating profit increased 0.7 per cent or 100 million yen year-over-year (YOY) to 24.9 billion yen ($222 million) in the first quarter (Q1) of the carrier’s fiscal year from 1 April to 30 June, 2018.

Net profits for Q1 decreased 10.3 per cent or 17.5 billion yen YOY due to the increase in losses relating to the disposal of aircraft.

Operating revenue for this period increased 8.7 per cent or 27.2 billion yen YOY to 342.1 billion yen. Operating expenses increased 9.3 per cent or 27.1 billion yen YOY and there was an increase of 10 billion yen in fuel costs because of the impact in market conditions.

JAL said in Q1, the load factor showed a 10.5 per cent YOY increase adding: “Through revising seat allocation to meet demand and expanded supply, and by proactively adopting measures to meet a healthy demand, both the inbound and outbound flights increased substantially.”

There was an increase in available seat kilometers of 7.3 per cent, revenue passenger kilometers increased by 8.8 per cent, increasing passenger load factor to 81.3 per cent, an increase of 1.1 percentage points YOY leading to the best first quarter ever.

In Q1, the airline said its US-European routes increased steadily while the China routes showed substantial increase, and overall there was healthy demand for international routes. As for domestic routes, they also performed well but JAL noted there is increased competition in the market.