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JAL Group Improves Yield on International Routes, Posting
Consolidated Operating Profit of 82.58 Billion Yen for April-December
Period Mid-February, 2008
The JAL Group reported that while consolidated operating revenue
for the first three quarters (April-December) declined by 1.9% to
1,701.198 billion yen year-on-year, the consolidated operating profit
surged to 82.5 billion yen, up 88.4 billion yen compared to an
operating revenue loss of 5.861 billion yen in the same period a year
earlier and the ordinary profit also went up to 79.257 billion yen,
up 86.981 billion yen.
As a result, the JAL Group recorded a net profit of 20.448
billion yen during the first three quarters, up 29.824 billion yen
from the prior-year period. There is no change to the financial
forecast for FY2007 ending in March 31, 2008, added JAL.
The consolidated operating revenue under report no longer
included JALUX which was excluded from the consolidated statement.
The JALUX operating revenue of approximately 58 billion yen would
have reflected an additional increase also in the consolidated
operating revenue.
The JAL Group attributed its consolidated operating profit to the
remarkable improvement in the core business segment of air
transportation, by restructuring non-profitable routes, achieving a
higher unit price boosted by the "Premium Strategy", downsizing
aircraft and reducing costs that include personnel costs.
The cost-savings measures brought the JAL Group a reduction of
operating costs by 13.3 billion yen with more fuel-efficient
aircraft, a decrease of personnel costs by 14.9 billion yen and also
a reduction of maintenance costs by 12.2 billion yen.
The international passenger segment posted an increase of
operating revenue of 23.6 billion yen or 4.3 % up to 572.9 billion
yen. While available seat kilometers (ASK) were reduced by 4.9%,
decrease in revenue passenger kilometers (RPK) remained at 3.6%. The
seat load factor edged up by 0.9 points to 71.9%.
The unit price went up 8.3% as well, reflecting foreign currency
exchange gains by 1.4% and fuel surcharge and fare increase by 2.2%
with a real unit price growth rate of 4.7%. A factor contributing to
the higher unit price was that both First and Business class traffic
rose as much as 13 %, although Economy class traffic fell by 1%.
In the domestic segment, the JAL Group also increased the unit
price by 5.6%. However, both ASK (available seat kilometers) and RPK
(revenue passenger kilometers) declined by 3.1% and 4.4%
respectively. Domestic operating revenue under report remained up 1%
at 520.1 billion yen.
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