Tokyo, Aug 7, 2006 - (JCN Newswire) - The JAL Group (TSE: 9205; Xetra: JAY) announced consolidated financial results for the first quarter (April through June 2006) of the current financial year (ending March 31 2007).
Total operating revenues for the three-month period were 522.2 billion yen, 18.8 billion yen (+3.7%) more than the same period last year. During the quarter, JAL continued its restructuring of international passenger routes by concentrating more on high profit and high growth routes. Route restructuring led to an improvement in passenger load factors, and contributed to the 5.2% increase in international passenger revenue during the period.
Cost-structure reforms conducted by the JAL Group limited the negative impact that increased fuel costs, up 11.6% on the previous year, and an unfavorable US$ = Yen exchange rate had on operating expenses. Operating expenses were 554.1 billion yen, up 3.5% on the same period last year.
The Group posted a first quarter net result of a 26.7 billion yen loss, an improvement of 11.5 billion yen on the previous year's first quarter net loss of 38.3 billion yen.
Over the past 12 years, the first quarter result has generally shown a loss, with the loss being made up and profits earned in the second quarter.
JAL Group First Quarter Consolidated Results for FY06
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(billions of yen)
Q1 ended June 30,
2006 2005 Change % Change
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Total operating revenue 522.2 503.3 18.8 103.7
International passenger 167.8 159.6 8.2 105.2
Domestic passenger 150.9 150.3 0.6 100.4
International cargo 43.8 41.1 2.6 106.6
Other 159.5 152.3 7.2 104.7
Total operating expenses 554.1 535.4 18.7 103.5
Operating income (loss) -31.9 -32.0 0.1 --
Ordinary income (loss) -35.5 -37.4 1.8 --
Net income (loss) -26.7 -38.3 11.5 --
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Air Transport Segment Details
International passenger traffic:
Overall passenger demand on international routes was favourable. There was particularly strong demand on Europe, US, Southeast Asia and Korea routes. Demand on China routes bounced back, making a remarkable recovery from the negative impact that last year's anti-Japanese demonstrations had on travel to China.
Due to an increase in demand for first and business class travel, and fuel surcharges introduced to cope with higher fuel prices, there was an 11.2% increase in unit price. Revenue passenger numbers decreased by 5.8% to 3,192,191 on the same period last year, mainly due to a 11.6% reduction in the number of available seats kilometer (ASK), the result of route restructuring and aircraft down-sizing. The international passenger load factor was up 4.6 points on the same period last year. Revenue passenger kilometers decreased by 5.4% and revenue grew by 8.2 billion yen (5.2%) to 167.8 billion yen.
Domestic passenger traffic:
When compared to last year, the domestic revenue passenger total was down by 1.6% to 10,368,755, mainly due to the increase demand generated by the 2005 World Exposition held in Japan from March 25, 2005. Unit price increased due to fare increases caused by rising fuel costs, resulting in revenues of 150.9 billion yen, up 0.6 billion yen (+0.4%) on the same period last year. JAL increased the number of Class J seats - business class seats - on domestic routes due to popular demand, and expanded its IC check in services. There was a reduction in revenue passenger kilometers of 0.8% - basically no change on the year before.
International cargo traffic:
Demand out of overseas markets, such as China including Hong Kong, was generally weak, but demand from Japan was buoyant. Traffic measured in revenue cargo ton kilometers was down 3.4%. However, unit price rose 10.3% when compared to the previous year, due to an increase in the percentage of high yield cargo carried, and due to revised fuel surcharges. Revenue was up by 2.6 billion yen (+6.6%) to 43.8 billion yen.
Fuel:
This year's first quarter fuel costs rose to an average of US$82.0 per barrel of Singapore Kerosene, compared to an average price of US$66.7 in the same period last year. Countermeasures such as fuel hedging and fuel consumption reductions, helped to limit the full impact of the price increase. As a result, the fuel bill for the quarter was 97.4 billion yen, an increase of 10.1 billion yen, up 11.6% on the same period last year.
Foreign exchange: The average US dollar - yen exchange rate for the period was US$1.00 = 115 yen, compared to a rate of US$1= 106.7 yen for the previous year. The exchange rate had a negative effect on operating income of minus 6 billion yen.
Forecast for the Year Ending March 31, 2007
The forecast for the consolidated results for the year ending March 31, 2007 is unchanged on the forecast made on May 10, 2006.
Consolidated Financial Forecast for the Year Ending March 31, 2007
(As of May 10, 2006)
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(millions of yen)
FY2006 Difference on FY2005
Ended March 31, 2007 Ended March 31, 2006
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1) Consolidated
operating revenues: 2,301,000 101,700
International passenger 725,000 34,800
Domestic passenger 703,000 43,100
International cargo 198,000 17,500
Other 675,000 6,500
2) Consolidated operating income 17,000 43,800
3) Consolidated ordinary income 500 42,100
4) Consolidated net income 3,000 50,200
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JAL Group Consolidated Traffic Statistics First Quarter
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Q1 ended June 30, %Change/
2006 2005 points
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International
Passenger number 3,192,191 3,390,003 94.2%
Revenue passenger Kilometers (000) 15,341,359 16,219,477 94.6%
Avaialable seat Kilometers (000) 21,961,711 24,854,560 88.4%
Revenue seat Kilometers (000) 69.9% 65.3% 4.6
Revenue cargo ton Kilometers (000) 1,049,579 1,086,497 96.6%
Mail ton Kilometers (000) 38,548 37,669 102.3%
Revenue ton Kilomemters (000) 2,510,256 2,628,343 95.5%
Available ton Kilometers 3,819,694 4,122,269 92.7%
Revenue weight load factor 65.7% 63.8% 1.9
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Domestic
Passenger number 10,368,755 10,542,344 98.4%
Revenue passenger Kilometers (000) 7,724,386 7,786,396 99.2%
Avaialable seat Kilometers (000) 12,779,296 12,732,734 100.4%
Revenue seat Kilometers (000) 60.4% 61.2% -0.8
Revenue cargo ton Kilometers (000) 90,637 91,801 98.7%
Mail ton Kilometers (000) 19,327 19,028 101.6%
Revenue ton Kilomemters (000) 697,319 693,591 100.5%
Available ton Kilometers 1,500,428 1,493,280 100.5%
Revenue weight load factor 46.5% 46.4% 0.1
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Total
Passenger number 13,560,946 13,932,347 97.3%
Revenue passenger Kilometers (000) 23,065,745 24,005,873 96.1%
Avaialable seat Kilometers (000) 34,741,007 37,587,294 92.4%
Revenue seat Kilometers (000) 66.4% 63.9% 2.5
Revenue cargo ton Kilometers (000) 1,140,216 1,178,298 96.8%
Mail ton Kilometers (000) 57,875 56,697 102.1%
Revenue ton Kilomemters (000) 3,207,575 3,321,934 96.6%
Available ton Kilometers 5,320,122 5,615,549 94.7%
Revenue weight load factor 60.3% 59.2% 1.1
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International results include data from JAL, Japan Asia Airways and JALways. Domestic results include data from JAL, Japan Transocean Air, JAL Express, Japan Air Commuter, Hokkaido Air System and J-Air.. Domestic results for the 1st quarter FY2006 also includes data from Ryukyu Air Commuter.
DISCLAIMER
Certain statements made in this document, including some management strategies and targets, may contain forward-looking statements which reflect management's views and assumptions. We may not be successful in implementing our business strategies, and management may fail to achieve its targets. The management targets and other forward-looking statements involve current assumptions of future events as well as risks and uncertainties that could significantly affect expected results, including without limitations adverse economic or political conditions in Japan or other countries; increased jet fuel prices; negative changes in foreign exchange rates; terrorist attacks and military conflicts, and health epidemics. Please see other disclosure and public filings we made or will make for additional information regarding the risks in our businesses. To the extent this document contains such forward-looking statements, we have no obligation or intent to update them unless required by law.
About JAL
The JAL Group is Asia's biggest airline group in terms of sales revenues and 2nd largest in Asia in terms of passengers carried annually. JAL Group airlines serve 216 airports in 34 countries and territories, including 60 airports in Japan. The international network covers over 246 passenger routes and 37 cargo routes, and the domestic network covers 154 routes. JAL and its seven subsidiary airlines make a total of up to 1,200 domestic and international routes passenger flights a day. In the year ending March 31, 2008, JAL Group airlines carried over 55 million passengers.
With around 23,000 employees in the air transport segment, JAL Group operates a fleet of some 270 aircraft including Boeing 747s and B777s and is now in the process of a major fleet renewal, introducing more fuel-efficient small and medium aircraft such as the B737 New Generation series and in the future the new high-tech Boeing 787 "Dreamliner".
JAL First Class offers fully reclining Sky
Contact:
Geoffrey Tudor
geoffrey.tudor@jal.com
Stephen Pearlman
stephen.pearlman@jal.com
Telephone: 81-3-5460-3109
Fax: 81-3-5460-3108
www.jal.com/en/corporate/
Aug 7, 2006
Source: JAL
JAL (TSE: 9205) (U.S: JALSY)
From the Japan Corporate News Network
http://www.japancorp.net
Topic: Press release summary
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