Japan Airlines (9201) Q1 2025 earnings summary

Executive summary

• Revenue rose 11.2% year-over-year to JPY 424.0 billion for FY24Q1, but EBIT fell 29.5% to JPY 22.1 billion and net profit dropped 39.4% to JPY 13.9 billion, reflecting higher operating expenses and fuel costs.

• International passenger revenue increased sharply due to strong inbound demand and high yields, while domestic passenger numbers lagged, resulting in only a slight revenue increase.

• JAL is advancing business model reforms, focusing on LCC, Mileage/Finance & Commerce, and other segments to drive future profitability.

• Non-aviation business growth and cost reduction efforts contributed to EBIT exceeding profit targets.

• Segment reporting was restructured this fiscal year to better align with business model reforms.

Financial highlights

• Consolidated revenue for FY24Q1 was JPY 424.0 billion, up 11.2% year-over-year.

• EBIT decreased 29.5% year-over-year to JPY 22.1 billion, with EBIT margin dropping to 5.2%.

• Net profit fell 39.4% year-over-year to JPY 13.9 billion.

• Operating expenses increased 15.0% year-over-year, mainly due to higher fuel costs (+19.0%).

• Basic EPS was JPY 32.00, down from JPY 52.77 in the prior year.

Outlook and guidance

• FY2024 full-year revenue forecast is JPY 1,930.0 billion, with EBIT projected at JPY 170.0 billion and net profit at JPY 100.0 billion.

• International passenger revenue expected to grow 27.1% year-over-year; domestic passenger revenue to rise 7.1%.

• No changes to previously announced full-year forecasts or dividend guidance.

• Sensitivity to fuel and FX rates remains high, with profit impact scenarios provided.