JAL Reports Q1 Results for FY2009

The JAL Group has reported rather bleak consolidated financial results for the first quarter of the fiscal year 2009, from April 1 through to June 30, 2009.

With the pandemic threat of the Swine Flu (H1N1) occurring within this reporting period which is also the first April-June period since the economic downturn, operating conditions compared to a year before are starkly harsher.

Reflecting these circumstances, first and business class traffic was significantly down due to cutbacks in the number of business trips or downgrades to economy class business travel, and leisure demands were weak especially after the outbreak of the influenza in May.

The operating revenue of JAL's core business segment, the air transportation segment, was a year-on-year decline of 137.2 billion yen at 290.9 billion yen. Consequently, in contrast to the 3.4 billion yen income achieved in this business category the same period last year, an operating loss of 84.2 billion yen was recorded this quarter.

The air-related and travel-related business segments of the JAL Group too, suffered from the effects of the world economy and outbreak of the Swine Flu and both segments posted a combined operating loss of 2.7 billion yen.

The credit card and leasing companies of the group showed deteriorated earnings versus previous year due to slow growth in transaction volume, but achieved an operating income of 1.3 billion yen brought about by an increase of 60,000 cardholders.

Overall, JAL's operating revenue for the three-month period is 334.8 billion yen, 155.4 billion yen down from the year before.

All operating cost categories in the air transportation segment were reduced through the group's rigorous implementation of cost cutting measures, with the exception of aircraft depreciation which remained close to the year before due to the introduction of more fuel-efficient aircraft.

Major reductions were seen in the areas of fuel costs and commissions which were respectively down by 10.6 billion yen and 11.3 billion yen. As a combined result of cost cuts in other business segments, the group managed an overall reduction of 65.4 billion yen in operating expense from 486.4 billion yen last year to 421 billion yen.

The respective operating and ordinary loss reported for this quarter is 86.1 billion yen and 93.9 billion yen. Compared to the same period last year, this represents 90 billion yen down from the 3.9 billion yen operating income, and 94.7 billion yen down from the 0.7 billion yen ordinary income posted. The ensuing loss for this quarter is 99 billion yen, 95.6 billion yen more than the loss incurred last quarter.

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