JAL Group Announces 1st Quarter Consolidated Results for Financial Year 2007.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, Aug 6, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Today the JAL JAL Jalisco (Mexican state) JAL Jalapa (Guatemala territorial division) JAL Jump And Link JAL Japan Airlines Company, Ltd. Group announced consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results for the first quarter (April through June June: see month. 2007) of FY2007, the current financial year ending March 31 2008. Total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the three-month period were 520.6 billion yen, 1.5 billion yen (- 0.3%) down on the same period last year. The decrease occurred primarily as a result of the trading company JALUX no longer being categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat as a JAL Group consolidated subsidiary, after JAL Group reduced its stake in the trading company in March 2007. However, in the air transportation segment, there was an increase in total revenue. Operating revenue for the air transport segment including both international and domestic passenger and cargo businesses, increased by 3.0% up 12.1 billion yen from 409.9 billion yen to 422.0 billion yen. An increase in unit price contributed to increases in international and domestic passenger revenue of 2.5% and 2.9% respectively. Compared to the previous year, supply measured in available seat kilometers (ASK) was 4.2% lower as a result of the airline's strategy of route restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and fleet downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing . JAL is focusing on high profit and high growth routes and suspending low profits scheduled routes to build a more profit-focused network. The company is also downsizing its fleet, replacing older aircraft with new mostly medium and small size aircraft to strengthen its competitive edge. In terms of ASK, international and domestic passenger supply were down 5.9% and 1.5% respectively. Total demand measured in revenue passenger kilometers (RPK RPK Republican Party of Kentucky RpK Rocketplane Kistler (Oklahoma City, OK aerospace company) RPK Revenue Passenger Kilometre RPK Random Player Killing (gaming) ) was down 6.9% on the previous year, reflecting the decrease in supply (ASK). In terms of RPK, international and domestic passenger demand was down 8.6% and 3.4% respectively when compared to the previous year. On a consolidated basis, non-airline business revenue decreased as a result of JALUX ceasing to be a JAL Group subsidiary at the end of last financial year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were 529.2 billion yen, down 24.9 billion yen or 4.5% on the same period last year. The reduction in total operating costs operating costs npl → gastos mpl operacionales is a result of steady implementation of cost reforms outlined in the JAL Group medium-term corporate plan. The reforms include route restructuring, fleet downsizing, personnel reductions, fuel consumption reductions measures, and contingency contingency n. an event that might not occur. measures such as a decrease in JAL staff's basic wage. The Group posted a first quarter net result of a 4.2 billion yen loss, an improvement of 22.4 billion yen on the previous year's first quarter net loss of 26.7 billion yen. JAL Group First Quarter Consolidated Results for FY07
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(billions of yen)
Q1 ended June 30,
2007 2006 Change % Change
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Total operating revenue 520.6 522.2 -1.5 99.7
International passenger 172.1 167.8 4.2 102.5
Domestic passenger 155.4 150.9 4.4 102.9
International cargo 44.4 43.8 0.6 101.4
Other 148.7 159.5 -10.8 93.2
Total operating expenses 529.2 554.1 -24.9 95.5
Operating income (loss) -8.5 -31.9 23.3 --
Ordinary income (loss) -3.2 -35.5 32.3 --
Net income (loss) -4.2 -26.7 22.4 --
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Air Transport Segment Details 1) Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of Air Transport Segment
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(billions of yen)
Q1 ended June 30,
2007 2006 Change % Change
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Operating revenue 409.9 422.0 12.1 103
International passenger 167.8 172.1 4.2 103
Domestic passenger 150.9 155.4 4.4 103
International cargo 43.8 44.4 0.6 101
Domestic cargo 6.8 6.7 0.0 99
Other 18.8 20.2 1.4 108
Incidental business 21.6 23.0 1.4 107
Operating cost 443.0 432.9 -10.0 98
Fuel 97.5 97.5 0.0 100
Airport facilities 32.4 32.4 0.0 100
Maintenance 34.9 33.0 -1.9 95
Passenger services 12.0 11.8 -0.2 98
Commissions 29.0 26.1 -2.8 90
Aircraft depreciation 18.3 17.8 -0.5 97
Aircraft leases 26.6 26.9 0.3 101
Personnel 78.3 72.5 -5.8 93
Other 114.0 114.9 0.9 101
Operating income -33.0 -10.8 22.1 --
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2) International passenger traffic: Depreciation of the yen against the Euro and US dollar resulted in weak tourism demand on Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Hawaii Hawaii, island, United StatesHawaii, island (1990 pop. 120,217), 4,037 sq mi (10,456 sq km), largest and southernmost island of the state of Hawaii and coextensive with Hawaii co.; known as the Big Island. routes. Demand was particularly strong on Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. routes. China and Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. route demand grew at a steady pace particularly with regard to business passengers. Demand exceeded expectations on transpacific trans·pa·cif·ic adj. 1. Situated on or coming from the other side of the Pacific Ocean. 2. Spanning or crossing the Pacific Ocean. and Oceania Oceania (ōshēăn`ēə, –ā`nēə) or Oceanica (ōshēăn`ĭkə) routes. Demand measured in revenue passenger kilometers (RPK) decreased 8.6% when compared to the same period last year, mainly due to an overall decrease in supply. Even though flight frequency on China routes was increased in the second half of FY2006 (the year ending March 31, 2007), total supply measured in available seat kilometers (ASK) was 5.9% lower than last year due to reduction in flight frequency and suspensions of under-performing routes. Increased business passenger demand and fuel surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. increases in the second half of FY2006 meant that unit price increased by 12.2% from the same period a year earlier. International passenger revenue increased by 4.2 billion yen to 172.1 billion yen an increase of 2.5% on the previous year. A total of 3,091,999 passengers were carried on JAL international flights, down 3.1% on the previous year. 3) Domestic passenger traffic: Individual passenger and corporate demand gradually grad·u·al adj. Advancing or progressing by regular or continuous degrees: gradual erosion; a gradual slope. n. Roman Catholic Church 1. recovered. To stimulate demand JAL offered a range of special seasonal fares. JAL carried 10,028,920 passengers on domestic routes during the first quarter, 2.3% down on the previous year. This was mainly due to fare increases which in particular affected demand from group passengers. Overall, demand measured in revenue passenger kilometers (RPK) was down 3.4% on the same period a year earlier. Due to route restructuring in Japan, supply measured in available seat kilometers (ASK) was 1.5% down on the previous year. Unit price increased by 6.6% from the previous year due to fare increases. Domestic passenger revenue was up 4.4 billion yen or 2.9% to 155.4 billion yen. 4) International cargo traffic: Cargo demand from Japan to China grew tenfold tenfold Adjective 1. having ten times as many or as much 2. composed of ten parts Adverb by ten times as many or as much Adj. 1. , and demand from Japan to other destinations was also strong. There were concerns about demand out of Europe and Southeast Asia due to the depreciation of the yen, but demand from China to Europe via Japan was strong. Traffic measured in revenue cargo ton kilometers was up 2.1%. Unit price decreased 0.7% when compared to the previous year. Revenue was up 1.4% to 44.4 billion yen. 5) Fuel: This year's first quarter fuel costs averaged of US$79.3 per barrel barrel: see English units of measurement. of Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). Kerosene kerosene or kerosine, colorless, thin mineral oil whose density is between 0.75 and 0.85 grams per cubic centimeter. A mixture of hydrocarbons, it is commonly obtained in the fractional distillation of petroleum as the portion boiling off , compared to an average price of US$82.0 in the same period last year. Even though the average cost per barrel fell slightly year on year, the price of fuel still remains at a high level. The weak yen against the US Dollar, and a reduced fuel hedging Fuel hedging is the practice, often employed by airline companies, of making advance purchases of fuel at a fixed price for future delivery to protect against the shock of anticipated rises in price. See also
6) Miscellaneous: Steady progress has been made in implementing the cost reduction measures outlined in the medium-term corporate revival plan FY2007-2010, which includes personnel cost reductions, promotion of e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. and a review of business work processes, and a review of sales commission rates and contracts made with companies outside the JAL Group. 7) Foreign exchange: The average US dollar - yen exchange rate for the period was US$1.00 = 119.3 yen, compared to a rate of US$1 = 115.0 yen for the previous year. The exchange rate had a negative effect on operating income of minus 2.1 billion yen. However a foreign exchange non-operating profit gain of 8.6 billion yen was achieved through such measures as hedging. 8) Financial Targets for the consolidated results for the year ending March 31, 2008 remain unchanged on the forecast made on May 9, 2007. 9) Financial Targets for the consolidated results for the year ending March 31, 2008 remain unchanged on the forecast made on May 9, 2007.
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(millions of yen)
FY2007 Difference on FY2006
Ended March 31, 2008 Ended March 31, 2007
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1) Operating revenues: 2,197,000 -104,900
International passenger 724,000 -800
Domestic passenger 691,000 15,400
International cargo 192,500 200
Other 589,500 -121,300
2) Operating income 35,000 12,100
3) Ordinary income 21,000 500
4) Net income 7,000 23,200
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*Figures rounded down to the nearest tenth of a billion yen.
**Key assumptions used for above figures: JPY 120 = US$1.00; average
aircraft fuel price = $75 per barrel
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 3,091,999 3,192,191 96.9%
Revenue passenger Kilometers (000) 14,024,825 15,341,359 91.4%
Avaialable seat Kilometers (000) 20,675,767 21,961,711 94.1%
Revenue seat Kilometers (000) 67.8% 69.9% -2.1
Revenue cargo ton Kilometers (000) 1,071,818 1,049,579 102.1%
Mail ton Kilometers (000) 40,685 38,548 105.5%
Revenue ton Kilomemters (000) 2,412,255 2,510,256 96.1%
Available ton Kilometers 3,714,138 3,819,694 97.2%
Revenue weight load factor 64.9% 65.7% -0.8
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Domestic
Passenger number 10,028,920 10,368,755 96.7%
Revenue passenger Kilometers (000) 7,459,864 7,724,386 96.6%
Avaialable seat Kilometers (000) 12,592,882 12,779,296 98.5%
Revenue seat Kilometers (000) 59.2% 60.4% -1.2
Revenue cargo ton Kilometers (000) 94,032 90,637 103.7%
Mail ton Kilometers (000) 20,055 19,327 103.8%
Revenue ton Kilomemters (000) 673,080 697,319 96.5%
Available ton Kilometers 1,475,472 1,500,428 98.3%
Revenue weight load factor 45.6% 46.5% -0.9
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Total
Passenger number 13,120,919 13,560,946 96.8%
Revenue passenger Kilometers (000) 21,484,689 23,065,745 93.1%
Avaialable seat Kilometers (000) 33,268,649 34,741,007 95.8%
Revenue seat Kilometers (000) 64.6% 66.4% -1.8
Revenue cargo ton Kilometers (000) 1,165,850 1,140,216 102.2%
Mail ton Kilometers (000) 60,740 57,875 105.0%
Revenue ton Kilomemters (000) 3,085,335 3,207,575 96.2%
Available ton Kilometers 5,189,610 5,320,122 97.5%
Revenue weight load factor 59.5% 60.3% -0.8
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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, J-Air and Ryukyu
Air Commuter.
For more information, please visit the JAL website, http://www.jal.com/en/press/ About JAL The JAL Group (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 9205) is Japan's leading air transportation group, resulting from the integration of Japan Airlines and Japan Air System on October October: see month. 2, 2002. On April 1, 2004 the Group was reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. under a single "JAL/ Japan Airlines" brand, with Japan Airlines Domestic handling domestic passenger operations and Japan Airlines International responsible for international passenger and cargo operations. JAL International and JAL Domestic were integrated into one company in October 2006, now known as JAL International. Coordinating co·or·di·nate n. 1. One that is equal in importance, rank, or degree. 2. coordinates A set of articles, as of clothing or luggage, designed to match or complement one other, as in style or color. 3. the group is Japan Airlines Corporation, a holding company. For more information, please visit www.jal.com . Source: JAL Contact: Stephen Pearlman Public Relations Manager, Japan Airlines Tel: +81-3-5460-3109 Fax: +81-3-5460-3108 Email: stephen.pearlman@jal.com Japan Corporate News Network. All rights reserved. |
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