[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, 2022[IFRS]
Company name | Japan Airlines Co., Ltd | August 1, 2022 |
Stock Listing | Tokyo Stock Exchange | |
Code No. | 9201 | URL: https://www.jal.com |
Representative | Yuji Akasaka, President | |
Contact | Yuichiro Kito, General Manager, Finance Phone: +81-3-5460-3121 | |
Scheduled date for filing of Quarterly Report: | August 2, 2022 | |
Scheduled date for dividend payment: | Not Applicable | |
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, 2022 (April 1, 2022 to June 30, 2022)
(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, 2022 | |||||||||||||||||
268,896 | 102.1 | (27,521) | - | (28,808) | - | (19,560) | - | (15,980) | - | ||||||||
Three months ended | 133,032 | 74.1 | (82,645) | - | (83,885) | - | (57,919) | - | (55,931) | - | |||||||
June 30, 2021 | |||||||||||||||||
Basic earnings per share | Diluted earnings per share | ||||||||||||||||
(Loss in brackets) | |||||||||||||||||
Yen | Yen | ||||||||||||||||
Three months ended June 30, 2022 | (44.76) | - | |||||||||||||||
Three months ended June 30, 2021 | (132.54) | - | |||||||||||||||
(Note)Profit before financing and income tax represents as 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 ex pense are deducted.
(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, 2022 | 2,444,989 | 824,523 | 783,099 | 32.0 | 1,791.96 |
As of March 31, 2022 | 2,371,658 | 844,141 | 799,736 | 33.7 | 1,830.03 |
2. Dividends
Dividends per Share | ||||||||||
1st Quarter End | 2nd Quarter End | 3rd Quarter End | Fiscal Year End | Total | ||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Year Ended March 31, 2022 | - | 0.00 | - | 0.00 | 0.00 | |||||
Year Ending March 31, 2023 | - | |||||||||
Year Ending March 31, 2023 | 0.00 | - | - | - | ||||||
(Forecast) | ||||||||||
(Note)Revisions to the most recently disclosed dividends forecast: Yes
No interim dividend will be paid. There will be no change to the year-end dividend forecast. Please refer to "1. Qualitative Information concerning Financial Results for the First Quarter of FY 2022 (4) Dividends" in the Attachment.
3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2023 | (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 | 1,390,000 | 103.6 | 80,000 | 45,000 | |||||
(Note)Revisions to the most recently disclosed earnings forecast: None
Please refer to "1. Qualitative Information concerning Financial Results for the First Quarter of FY 2022 (3) Explanations of Forecast of Consolidated Financial Results" in the Attachment.
Notes
- Changes in significant consolidated subsidiaries during the three months ended June 30, 2022: None
- Changes in accounting policies/changes in accounting estimates
- Changes in accounting policies due to revisions in accounting standards under IFRS: None
- Changes in accounting policies other than 1): None
- Changes in accounting estimates: None
- Number of shares issued (common stock)
(a) Total number of shares issued at the end of the period (including treasury shares)
As of June 30, 2022 | : 437,143,500 | |
As of March 31, 2022 | : 437,143,500 | |
(b) Number of treasury shares at the end of the period | ||
As of June 30, 2022 | : 136,291 | |
As of March 31, 2022 | : 136,291 | |
(c) Average number of shares outstanding | ||
During the three months ended June 30, 2022 : | 437,007,209 | |
During the three months ended June 30, 2021 : | 437,007,265 |
※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, 2022. Documents distributed at the presentation are scheduled to be posted on our website on the same day.
※Regarding percentage or ratio compared to prior year, if changes exceed 1,000%, "- "is shown.
Attachment
CONTENTS | ||
1. Qualitative Information Concerning Financial Results for the First Quarter of FY2022 | 2 | |
(1) | Explanation of Operating Results | 2 |
(2) | Explanation on Financial Position | 5 |
(3) | Explanations of Forecast of Consolidated Financial Results | 6 |
(4) | Dividends | 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 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 Assumption) | 14 | |
(Additional Information) | 14 | |
(Revenue) | 15 | |
(Segment Information) | 17 |
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1. Qualitative Information Concerning Financial Results for the First Quarter of FY 2022
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Explanation of Operating Results
The revenue increased by 102.1% year on year to 268.8 billion yen, the operating expense increased by 40.7 % year
on year to 303.0 billion yen, the profit or loss before financing and income tax (hereinafter referred as "EBIT") was the loss of 27.5 billion yen (EBIT loss of 82.6 billion yen in the same period in the previous year).The loss attributable to owners of the parent for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022 hereinafter referred as the "First Quarter Period") was 19.5 billion yen (the loss attributable to owners of the parent of 57.9 billion yen in the same period in the previous year).
Consolidated financial results are as follows.
(JPY Bn) | Three months ended June | Three months ended June | % or points compared to |
30, 2021 | 30, 2022 | prior period | |
Revenue | 133.0 | 268.8 | 202.1% |
FSC International Passenger | 11.2 | 62.4 | 557.0% |
FSC Domestic Passenger | 38.0 | 88.0 | 231.4% |
Cargo/Mail | 47.6 | 65.3 | 137.1% |
FSC Others | 0.8 | 2.6 | 319.7% |
LCC | 0.0 | 3.3 | - |
Mileage, Lifestyle and Infrastructure | 35.2 | 47.0 | 133.5% |
and Others | |||
Operating Expense | 215.4 | 303.0 | 140.7% |
Fuel | 26.5 | 69.8 | 262.6% |
Excluding Fuel | 188.8 | 233.1 | 123.5% |
Profit or loss before financing and income | (82.6) | (27.5) | - |
tax (EBIT) (Loss in brackets) | |||
EBIT Margin (%) | - | - | - |
Profit or loss attributable to | (57.9) | (19.5) | - |
owners of the parent (Loss in brackets) | |||
(Note) 1. Figures have been truncated and percentages are rounded off to the first decimal place. |
- FSC: Full Service Carrier, LCC: Low Cost Carrier
- LCC includes both passenger revenue and related charges or fees
- 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.
- EBIT Margin=EBIT/Revenue.
6. Regarding percentage or ratio compared to prior year, if changes exceed 1,000%, "- "is shown.
Passenger demand that had decreased significantly by the COVID infection was on a recovery trend again in this first quarter due to the advancement of vaccination and adjustment to a post-COVID lifestyle. International passenger demand has been gradually recovering as worldwide border restrictions eased and business travels from Japan restarted due to partial easing of very strict Japanese border restrictions. Domestic passenger demand has been steadily recovering especially from the Tokyo metropolitan area as the state of emergency declaration and similar preventive measures were fully lifted. For cargo business, despite the Russia-Ukraine situation, disrupted ocean shipments led to strong demand for air cargo and further price increase, which resulted in our cargo business to remain very strong.
Amid such business environment, the JAL Group disclosed on May 6 "JAL Group Medium-Term Management Plan FY2021-2025 Rolling Plan 2022" in order to surely accomplish our preceding "JAL Group Medium-Term Management Plan FY2021-2025", which was disclosed last year. We will achieve our management targets by putting ESG at the core of our management strategy, working to solve social issues through our business activities, accelerating business model reform, and by rebuilding our financial structure.
Our ESG strategy aims to increase our long-term corporate value through creating sustainable movement of people and transactions by solving social issues. Accordingly, we ought to take initiatives to protect the environment, to pursue safety and peace of mind, to complete our social responsibilities sustainably as a social infrastructure and finally to provide rich life to everyone in the society. In June, our ESG initiatives and its disclosure were highly evaluated and thus JAL was selected as a constituent of two leading investment indices, "the FTSE Blossom Japan Index" and "the FTSE Blossom Japan Sector Relative Index". In addition, from this year, JAL has added two ESG-related indices to the
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performance-linked,share-based remuneration for Directors, which are the number of nominated investment indices and CO2 emissions per revenue-ton-km. Moreover, from July JAL has started the "JAL Carbon Offset" program for corporate accounts that visualizes their CO2 emissions volumes upon their business trips and provides opportunities to offset their CO2 emissions through supporting CO2 reduction and absorption programs.
The summary of our business situation in the financial period is described as below by business domain;
For Full Service Carrier business domain, the entry limit to Japan was raised to 20,000 entrants per day in June, which led to a gradual recovery of passenger demand to/from Japan. In addition, JAL steadily captured transit passenger demand travelling between Asia and North America by adjusting its flight schedules for easier connection at Narita Airport. For domestic passenger business we conducted promotional campaigns with local governments and railroad companies to stimulate Tokyo-inbound demand that has been slower to recover than Tokyo-outbound demand. Also, JAL has almost completed upgrading the main large-size fleets to A350s despite the COVID situation, which enabled us to provide enough capacity to meet the recovering demand in a timely manner. Due to this, JAL were able to effectively capture the strong demand during the long-holiday season in May.
For LCC business domain, our mid and long-haul international low-cost carrier, ZIPAIR Tokyo (ZIPAIR), has been gradually recognized by leisure customers and some flights were fully booked during the peak season. It has announced the launch of a new route to San Jose, California, USA, to enrich its international route network and capture further demand. Jetstar Japan started to fly cutting-edge,fuel-efficient A321 aircraft from July to mitigate environmental impacts and to improve comfort. Together with Spring Japan that had become our subsidiary since June 2021, the three low-cost carriers will continue to provide their customers with useful services and expand their business.
For the non-aviation business domain, JAL launched a new partnership program with one of the largest point service providers in Japan, Rakuten Point, which provided the JAL Groups' customers with much more occasions to earn and redeem JAL mileage. For JALUX that became our subsidiary last fiscal year, JAL and JALUX mutually used their respective know-how and resources to conduct joint sales of flight simulator experience as well as the development of new products. We will further advance to create new services and business opportunities by utilizing our expertise.
As the society shifts toward a balance of social economic activities and COVID prevention, both international and domestic passenger demand have been steadily recovering. There still exists various uncertain external environments including the Russia-Ukraine situation or price hike of raw materials including fuel. However, we will strive all together to achieve our performance target of this year by agile revenue-increasing measures and comprehensive cost control while conducting thorough preventive measures.
As a result of the above, in Full Service Carrier operations, the passenger traffic for International Passenger Business in the first quarter increased by 387.5% year over year, its revenue passenger kilometers (RPK) increased by 371.1% year over year, its the available seat kilometers (ASK) increased by 35.9% year over year, and the load factor was 67.6%. Likewise, the passenger traffic for Domestic Passenger Business increased by 124.5% year over year, its revenue passenger kilometers (RPK) increased by 127.1% year over year, its available seat kilometers (ASK) increased by 64.7% year over year, and the load factor was 55.8%. Revenue for Cargo and Mail Business increased by 37.1% year on year.
In LCC operations, for ZIPAIR the passenger traffic was 53,566 (number of passengers), its revenue passenger kilometers (RPK) was 269,260 (1,000 passenger-km), and its available seat kilometers (ASK) was 983,340 (thousands). Likewise, for SPRING JAPAN the passenger traffic was 42,981 (number of passengers), its revenue passenger kilometers (RPK) was 39,300 (1,000 passenger-km), and its available seat kilometers (ASK) was 101,991 (thousands).
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Japan Airlines Co. Ltd. published this content on 01 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2022 07:43:03 UTC.