
JAL Group recorded 424 billion yen (2.82 billion USD) in revenue in the first quarter of fiscal year 2024 (April 1 to June 30, 2024), the company announced on July 31, 2024. During the same quarter, it reported EBIT of 22.1 billion yen (147.52 million USD) and net profit of 13.9 billion yen (92.73 million USD).
The airline group’s revenues jumped by 11.2% compared to last fiscal year’s first quarter, primarily on the back of strong international passenger demand and the growth of its low-cost segment. International passenger segment contributed to 44% of the incremental revenue while the low-cost segment contributed 23%.
EBIT and net profit, on the other hand, were down 29.5% and 39.4% year-on-year, respectively.
“International passenger demand was strong, with the number of visitors to Japan in June reaching a record high for a single month, resulting in passenger numbers increasing by 11.4% for FSC [full service carrier] and 35.7% for ZIPAIR year-on-year,” said the company. “ZIPAIR expanded to 9 routes mainly in North America and Asia by the end of FY2023. … SPRING JAPAN captured recovering demand from China, resulting in international revenue passenger numbers increasing by approximately six times,” it further explained.
The airline explained fuel cost increase, exchange rate fluctuations, and increased staffing costs (formulated as “expanded investments in human capital”) were beyond the higher operating expenses and lower profits.
JAL Group did not adjust its existing full-year forecast first announced on May 2, 2024. It expects to record 1.93 trillion yen in revenue, 170 billion yen in EBIT, and 100 billion yen in net profit during the fiscal year, which will end on March 31, 2025.
The company’s main rival, ANA Holdings, announced its Q1 earnings a day earlier. It saw revenue increase and profit decrease in a fashion similar to JAL Group’s.