Financial results released today by Japan Airlines (JAL) revealed a 5.3-fold surge in carrier’s net profit during the April to December 2023 period, compared to the previous year.
During the period, the airline’s net profit reached 858 billion yen (equivalent to 5.85 billion U.S. dollars), exceeding the levels observed in the pre-pandemic year of 2019.
JAL generated 1.25 trillion yen in revenue over the course of nine months, representing a significant 24.2 percent growth compared to the corresponding period of the prior year. This marks the airline’s highest figure since it was re-listed.
The airline experienced a boost in profits due to a rise in the value of the yen and a reduction in fuel costs, both of which surpassed the company’s initial expectations. This allowed for effective cost management and contributed to the overall increase in profits.
The increase in global and local travel, due to the phased removal of travel restrictions and border controls by May of the prior year, has played a key role in the revival of passenger volumes for both international and domestic flights.
JAL also anticipated incurring a loss in revenue of approximately 2 billion yen due to the collision between a JAL-operated Airbus A350 jet and a smaller Japan Coast Guard plane at Tokyo’s Haneda Airport last month. Tragically, this incident resulted in the loss of five out of the six crew members aboard the coast guard plane.
In addition to the financial impact caused by runway closures and flight disruptions, the company reported that the total amount also accounted for losses resulting from the grounding of the A350 aircraft.
The major Japanese airline maintained its full-year earnings forecast, expecting its group net profit to increase by 2.3 times to 80 billion yen. Sales are projected to reach 1.68 trillion yen, reflecting a growth of 22.4 percent, despite the adverse effects of the accident.
ANA Holdings ( All Nippon Airways ) also raised its net profit forecast for the fiscal year ending in March due to improving travel demand, and this positive development is consistent with the earlier announcement.