Japan Airlines (9201) Q2 2025 earnings summary

Executive summary

• Revenue rose 9.9% year-over-year to ¥901.8bn in FY2024Q2, driven by strong international passenger and cargo demand, as well as growth in non-aviation businesses.

• EBIT decreased 6.1% year-over-year to ¥85.6bn, with EBIT margin down to 9.5% due to higher operating expenses, especially fuel and personnel costs.

• Net profit attributable to owners fell 19.1% year-over-year to ¥49.8bn, reflecting increased costs despite revenue growth.

• Interim dividend set at ¥40 per share; full-year forecasts and dividend guidance remain unchanged.

• The company is advancing business model reforms, focusing on LCC, Mileage/Finance & Commerce, and has restructured reporting segments.

Financial highlights

• Operating expenses increased 11.9% year-over-year, with fuel costs up 13.1% and personnel costs up 11.1%.

• EBITDA margin fell to 18.0% from 20.1% year-over-year.

• Free cash flow remained positive at ¥29.6bn, despite higher capital investment.

• Cash and cash equivalents at period-end increased to ¥750.6bn, maintaining strong liquidity.

• Interim earnings per share declined to ¥114.17 from ¥141.12 in the prior year.

Outlook and guidance

• Full-year revenue forecast maintained at ¥1,930bn, with EBIT projected at ¥170bn and net profit at ¥100bn.

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

• International and domestic passenger demand expected to continue recovering, supported by business and inbound travel.

• Fuel and FX market volatility remain key variables for second-half profitability.