Summary
- Japan Airlines Group (JAL Group) reported positive earnings before interest and tax (EBIT) and net profit in the primary quarter of FY23Q1.
- The group’s operating profit was 31.3 billion yen ($219 million), with a net profit of 23 billion yen ($161 million), and revenue increased by 42% in comparison with last yr’s first quarter.
- JAL Group’s domestic traffic has returned to 100% of pre-pandemic levels, and its low-cost carrier ZIPAIR experienced significant growth in passenger numbers and revenue.
This week Japan Airlines Group (JAL Group) announced its consolidated financial results for the primary quarter of Fiscal Yr 2023 (FY23Q1), covering the period from April 1st to June thirtieth, 2023. In the primary quarter, JAL Group reported that earnings before interest and tax (EBIT) and Net Profit turned positive for the primary time in 4 years.
Back within the black eventually
The Group, which incorporates Japan Airlines, ZIPAIR, SPRING JAPAN and Jetstar Japan, reported a Q1 operating profit of 31.3 billion yen ($219 million) and a net profit attributable to owners of 23 billion yen ($161m). In comparison with the primary quarter of last yr, revenue was up by 42%, EBIT climbed by 59 billion yen ($413m), and net profit turned from a lack of 19.5 billion yen ($136m) to a profit of 23 billion yen, a turnaround of 42.5 billion yen ($297m).
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JAL Group said that fuel expenses increased by 13.7% yr on yr attributable to the increased traffic, while overall operating expenses grew by 16.5%, well below the 37% growth in traffic volumes. It said that keeping expenses below the production volume was achieved attributable to a program of strong cost control.
JAL Group splits its airline operations into two segments, the Full Service Carrier Business Domain (Japan Airlines) and the LCC Business Domain. In Q1Japan Airlines saw passenger numbers increase by 2.2 times and revenue by 2.4 times yr on yr, attributed to continuing strong demand in international markets following the tip of border restrictions.
Domestic traffic has already returned to 100% of pre-pandemic levels because the economy bounced back and the absence of internal travel restrictions. Domestic passenger numbers and revenue grew 1.4 times in comparison with the primary quarter of FY22.
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Within the LCC Domain, the group said that ZIPAIR began servicing San Francisco in June, its third West Coast USA route. The low-cost carrier captured strong overseas demand in Q1 and significantly improved its passenger load aspects as demand grew to fulfill capability. ZIPAIR carried 4.6 times more passengers and generated 5.7 times more revenue than in FY22Q1.
Looking forward to the A350-1000 arriving
As each FSC and LCC services increase, JAL Group can also be returning all of its aircraft to service. In line with ch-aviation, Japan Air Lines is working 188 of a possible 193 aircraft, which incorporates 47 regional aircraft operating on a wet lease.
Its fleet of Airbus A350-900s, Boeing 737-800s, 767-300ERs, 777-300ERs and 787s are back in service with only a single aircraft here and there not currently operating. ZIPAIR’s fleet of six Boeing 787-8s are all in service from their base at Tokyo Narita International Airport (NRT).
In July, Japan Airlines launched a brand new nonstop service between Tokyo Haneda (HND) and Dalian (DLC) in China. It also announced a nonstop service between Haneda and Doha Hamad International (DOH) within the Summer 2024 schedule and a change of aircraft on the Haneda – Latest York route. From the winter schedule this yr, the airline will switch to the eagerly-awaited Airbus A350-1000, which is predicted to chop fuel consumption by around 15-25% in comparison with current aircraft.
Photo: Japan Airlines
JAL Group said that the three LCCs operate with their very own different characteristics, including SPRING JAPAN which targets routes in China and Jetstar Japan which mainly operates domestic flights. In contrast, ZIPAIR takes care of the low-cost long-haul sector, although all three will strive to construct a network based at Narita Airport that goals “to create a brand new flow of individuals, including young people and families.”
Have you ever flown with JAL or any of the LCCs recently? Tell us within the comments.