The FINANCIAL -- The JAL Group announced, the consolidated financial results for the reporting period of April 1 to December 31, 2011, the first three quarters of the fiscal year ending March 31, 2012.

JAL continued to review aircraft scheduling on each route and enforced measures to increase revenues while examining every cost category to achieve greater cost reduction, such as in fuel costs, according to Japan Airlines. Profit consciousness of each department has also been enhanced through the implementation of a new revenue management system introduced last April, which has helped to increase management efficiency.

As a result of these efforts, resilience to risks posed by changes in the operating environment has strengthened, and for the first three quarters of this fiscal year, JAL was able to achieve a consolidated net income of 146 billion yen based on consolidated operating revenue of 909.1 billion yen, operating expense of 747.4 billion yen and operating income of 161.6 billion yen. Air Transportation Segment

International Passengers -- As with the previous fiscal year, following the termination of underperforming routes and reduction in the number of aircraft types in its fleet, JAL has continued to review its fleet to enhance profitability through improving the balance of demand and capacity, and to also improve the capability to respond swiftly to changes in the operating environment.

In October, when passenger numbers to Thailand decreased due to the severe flooding there, JAL reduced the number of flights after the evacuation of a large number of Japanese expatriates and their families leaving Thailand had settled down. Meanwhile, JAL increased the number of flights on the Delhi route from four to five a week beginning on October 30, 2011 to meet the robust corporate travel demand observed in that sector.

In addition, as leisure demand for flights departing from Japan had recovered from the summer, special seasonal fares were offered and larger aircraft were used for over 148 flights to Honolulu between October and December 2011. In ways such as these, we strived to increase profitability by swiftly adapting to the fluctuations in demand.

JAL and oneworld alliance partner American Airlines have been steadily expanding the joint business launched in April 2010. Among other areas of co-operation, joint fares between China (via Japan) and the U.S. were announced in December. Timed with the commencement of code-share flights with WestJet on three domestic routes in Canada, JAL introduced attractive discount fares for flights between Japan (via Vancouver) and Canada in December. Furthermore, through improvements to in-flight services, such as the occasional tie-ups with popular restaurants to provide signature dishes onboard, JAL strived to attract passengers through greater convenience and better service.

International capacity for this reporting period on a consolidated basis declined year-on-year by 21.2% when measured in available-seat-kilometer, and demand declined year-on-year by 27.5% in terms of revenue-passenger-kilometer . Load factor was 6.0 points less at 68.8% compared to the same period in the previous year. Revenue from international passenger operations for the first three quarters of the fiscal year on a consolidated basis was 288.9 billion yen, representing 31.8% of total revenue.

Domestic Passengers -- Continuing with efforts to improve profitability through timely reaction to changes in the operating environment and by striking an appropriate balance between demand and capacity, JAL scheduled larger aircraft and operated extra flights on several performing routes such as between Haneda and Sapporo as well as Okinawa to maximize revenue, following the recovery in passenger demand in July. In the winter schedule, from late October, flight frequency on six routes, including Haneda＝Akita and Haneda=Okayama, were also increased for the convenience of the customers.

In hoping to boost domestic tourism, which would contribute to the local communities in Japan, JAL also sought to create new demand through the JAPAN PROJECT. Working in collaboration with local governments and businesses, JAL has been introducing the unique attractions of regional areas in Japan each month through inflight magazines and inflight meals.

As a result, domestic capacity, measured in ASK, declined year-on-year by 17.7% in the first three quarters of the fiscal year on a consolidated basis, while demand declined to a lesser degree, by16.9% in terms of RPK. Accordingly, load factor rose slightly to 63.3%. Domestic passenger revenue in the first three quarters of the fiscal year on a consolidated basis was 367.2 billion yen, representing 40.4% of total revenue.

International and domestic Cargo -- JAL endeavored to maximize revenues by responding to post-quake demand for transportation of automobile parts and cigarettes, and also scheduled larger aircraft to meet the urgent demand after the floods in Thailand last October.

In cargo sales, JAL strongly promoted its expertise in carrying temperature-controlled, high added-value goods, such as pharmaceuticals, as well as cargo from around Japan to overseas through the domestic-international connection services facilitated by the internationalization of Haneda Airport .

As a result of the suspension of freighters and large capacity cuts, many of which took effect in October 2010, the comparative volume of international cargo transported in this reporting period on a consolidated basis in revenue-cargo-ton-kilometer declined by 44.2% in comparison to the same period in the last year, and JAL logged a revenue of 40.6 billion yen in this segment.

Domestically, JAL made efforts to meet the demand for air transportation of cargo, which had shifted from surface transportation after the Great East Japan Earthquake. From July, JAL carried perishables especially from Hokkaido, Kyushu and Okinawa, and made full use of the belly space of extra passenger flights operated at the year-end to capture peak domestic cargo demand.

While capacity, in terms of available ton-kilometer, decreased by 22.5% due to the downsizing of network and aircrafts, the volume of domestic cargo transported in the first three quarters on a consolidated basis in RCTK terms declined year-on-year by 13.8%, and revenue generated from domestic cargo operations was 19.1 billion yen.

Related Stories

• Scottish Parliament backs 50p minimum alcohol unit price
• Thistle becomes first UK hotel group to gain full Vegetarian Society accreditation
• Natural History Museum receives Two Star rating from the SRA