Japan Airlines Corporation and Consolidated Subsidiaries Results for the Half-year Ended September 30, 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, Nov 6, 2007 - (JCN JCN Japan Corporate NewsJCN 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 (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 9205) announced the consolidated half-year results for financial year 2007, the period from April 1, 2007 to September 30, 2007. Supply on international and domestic passenger routes measured in available seat kilometers (ASK) decreased respectively by 5.6% and 2.3%, as a result of network 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). by shifting to high profit routes, suspending low profit routes and aircraft 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 , as outlined in the JAL Group Medium Term Revival Plan FY2007-2010. Consequently, 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) ) fell on international passenger routes by 5.7% and on domestic routes by 3.5%. However, due to an increase in unit price, operating revenue 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 core air transport business segment which includes cargo, increased by 2.3% when compared to the same period last year, up by 20.6 billion yen to a total of 931.6 billion yen. Consolidated operating revenue decreased by 7 billion yen or 0.6% from the same period last year to 1,142.9 billion yen. One main factor was a 38 billion yen decrease in non-air transport business revenue resulting from the exclusion of JALUX from the consolidated statement, after the trading company changed from a consolidated subsidiary to an equity method affiliate. As a result of steady implementation of business structure and cost reforms outlined in the Medium Term Revival Plan, such as a review of all routes, aircraft downsizing, and personnel cost reduction, 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. decreased by 4.9% or 55.5 billion yen from the same period last year, to a total of 1, 086.2 billion yen. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased by 48.4 billion yen from the same period last year to 56.6 billion yen. Ordinary profit increased by 53.3 billion yen to 58.7 billion yen. When compared to the same period last year, extraordinary losses increased by 34.8 billion yen to 40.5 billion yen, mainly due to implementation of the special early retirement plan, the posting of impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. losses resulting from speeding up of the retirement of aircraft and subsequent decision to sell aircraft, and provision of a reserve for anti-competitive practice JAL Group Consolidated Results First Half FY2007 (April 1 - September 30, 2007)
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H1 ended Sept. 30,
2007 2006 Change % Change
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Total operating revenue 1,142.9 1,150.0 - 7.0 99.4%
International passenger 384.1 370.7 + 13.4 103.6%
Domestic passenger 352.7 345.8 + 6.9 102.0%
International cargo 91.4 92.4 - 0.9 99.0%
Other 341.0 325.9 15.0 104.6
Operating costs 1,086.2 1,141.8 -55.5 95.1%
Operating income (loss) 56.6 8.1 48.4 694.3%
Ordinary income (loss) 58.7 5.3 53.3 -
Net income (loss) 7.3 1.5 5.7 483.9%
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* Figures rounded down to the nearest 100 million yen
3. First Half Factors a) 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. International Passenger Demand: Tourism demand was weak on Europe routes and Hawaii routes due to a weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of the yen, and also on Taiwan routes where
competition intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: . Demand out of Korea was particularly strong, and business demand was strong on US routes, Southeast Asian routes and China routes. Oceania routes, where supply has been reduced considerably from the previous year, also enjoyed strong demand. As a result, demand measured in revenue passenger kilometers (RPK) was 94.3% from the same period last year. Revenue seat load factor was almost the same as last year at 71.4%. The number of international passengers carried by JAL Group airlines decreased just 0.8% to 6,703,388. Supply: In addition to fleet downsizing, JAL has actively reduced flight frequency and suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. flights on low profit routes. On the other hand, the airline has increased scheduled flights scheduled flight schedule n → vol régulier scheduled flight schedule n → Linienflug m on high profit routes to such high growth markets as China, India and Vietnam, whilst increasing international charter flights to meet demand primarily from the 'baby boomer' generation. Supply measured in available seat kilometers decreased by 5.6% from the same period last year. Unit price: In addition to an increase in business passenger demand and the shifting of resources to high profit routes, air fares were revised and the 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. was increased resulting in an increase in unit price of 9.9% compared to the same period last year. Revenue: Given the above, revenue increased by 3.6% from the same period last year up 13.4 billion yen to 384.1 billion yen. Domestic Passenger Demand: JAL implemented a number of measures that increased customer convenience and value through, for example, the introduction of discount fares and the launch of seasonal promotional campaigns. However, group demand in particular was sluggish due to a review of last year's air fares. Overall demand was also negatively affected by flight cancellations caused by typhoons which hit Japan in July. Demand measured in revenue passenger kilometers was 3.5% down on the same period last year. The number of domestic passengers carried by JAL Group airlines decreased by 3.7% to 21,371,061. Supply: After reviewing routes, flight frequency was increased on routes with strong demand such as Osaka (Kansai) - Sapporo and Osaka (Kansai) - Okinawa (Naha). Supply measured in available seat kilometer kilometer one thousand (103) meters; 3280.83 feet; five-eighths of a mile; abbreviated km. was 2.3% down on the same period last year. Unit price: Due to changes in passenger composition and an increase in air fares, unit price increased by 5.7% when compared to the same period last year. Revenue: Given the above, revenue increased by 2.0% from the same period last year by 6.9 billion yen to 352.7 billion yen. International Cargo Demand: Demand from Japan to North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. decreased from the same period last year due to a reduction in belly belly /bel·ly/ (bel´e) 1. abdomen. 2. venter (1). bel·ly n. 1. See abdomen. 2. The stomach. 3. The womb; the uterus. space resulting from a decrease in the number of passenger flights operated. However, from Japan to China, where supply has been increased, demand has increased by over 20% when compared to the same period last year. Demand to Europe 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. also increased. Demand from China to Japan increased from last year, but demand from Europe was sluggish from the summer onwards on·ward adj. Moving or tending forward. adv. also on·wards In a direction or toward a position that is ahead in space or time; forward. Adv. 1. due to a strong Euro. Demand from Southeast Asia to Japan also decreased. Demand to the US via Japan was stagnant stagnant /stag·nant/ (stag´nant) 1. motionless; not flowing or moving. 2. inactive; not developing or progressing. as supply beyond Japan was decreased. Revenue cargo ton kilometers was 0.9% down when compared to the same period last year. Unit price: Declined 0.2% from the same period last year. Revenue: Revenue decreased by 1.0% from the same period last year by 0.9 billion yen to 91.4 billion yen. b) Operating Expenses & Foreign Exchange Fuel costs The price of Singapore 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 from April to September 2007 averaged US$82.2 per barrel, a slight decrease on the US$84.9 per barrel average for the same period last year. Nevertheless, fuel prices remained high. Despite the weak yen, a reduction in the effect of hedging, and other factors that increased fuel costs, due to a reduction of fuel consumption through steady implementation of the Revival Plan, such as aircraft downsizing, fuel costs decreased by 3.1 billion yen to 206 billion yen. Personnel costs As a result of steadily implementing the various measures of the Medium Term Revival Plan, in the air transport segment personnel costs decreased by 7.1 billion yen from the same period last year. The group will continue to increase productivity by, for example, expanded introduction of Toyota Production System The Toyota Production System (TPS) is the philosophy which organizes manufacturing and logistics at Toyota, including the interaction with suppliers and customers. The TPS is a major part of the more generic "Lean manufacturing". methods, and reducing retirement benefit expenses. Foreign Exchange The average yen-to-dollar exchange rate for the half year was JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 119.7 to US$1.00 compared to the average rate of JPY 115.5 to US$1.00 for the same period last year. The impact of foreign exchange on operating profit was minus 3.7 billion yen, but as a result of hedging and other measures, the company posted a foreign exchange gain of 10.3 billion yen in non-operating income. Miscellaneous Steady reduction of sales commission rates, review of external contracts and so on. 4. Outlook for FY2007 - Revised Forecast Consolidated Financial Forecast for FY2007 the Year Ending March 31, 2008: The revised forecasts of consolidated results for the complete fiscal year replace those announced on May 9, 2007 and are as follows: Consolidated Financial Forecast for the Year Ending March 31, 2008
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FY2007 FY2007 Diff FY2006
Revised Previous in results
Forecast Forecast Forecast 3/31/2006
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1) Operating revenues: 2,238.0 2197.0 41.0 2,301.9
International passenger 744.5 724.0 20.5 724.8
Domestic passenger 689.0 691.0 - 2.0 675.6
International cargo 188.5 192.5 - 4.0 190.5
Other 616.0 589.5 26.5 710.8
2) Operating costs 2,190.0 2162.0 28.0 2,278.9
3) Operating income 48.0 35.0 13.0 22.9
4) Ordinary income 44.0 21.0 23.0 20.5
5) Net income 7.0 7.0 0.0 - 16.2
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*Figures rounded down to the nearest 100 million yen
Additional financial improvement measures By implementing the following additional measures, as outlined in our forecast, we will achieve ordinary income and net income as initially planned. a) Reduction of pension costs - To improve the balance sheet, and strengthen our financial structure, during this fiscal year we plan to reduce pension costs. b) Deeper cost reform - We will continue with Group-wide cost restructuring by reviewing property rental agreements A rental agreement is a contract, usually written, between the owner of a property and a renter who desires to have temporary possession of the property. As a minimum, the agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term. , service contract agreements, and by implementing measures to further reduce general company overheads. JAL Group Consolidated Traffic Statistics First Half 2007 vs. 2006
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H1 ended Sept. 30, %Change/
2007 2006 points
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International
Passenger number 6,703,388 6,760,569 99.2%
Revenue passenger Kilometers (000) 30,500,422 32,354,267 94.3%
Avaialable seat Kilometers (000) 42,743,468 45,286,215 94.4%
Revenue seat Kilometers (000) 71.4% 71.4% - 0.0
Revenue cargo ton Kilometers (000) 2,194,721 2,213,925 99.1%
Mail ton Kilometers (000) 85,670 76,318 112.3%
Revenue ton Kilomemters (000) 5,106,369 5,289,073 96.5%
Available ton Kilometers 7,626,384 7,958,566 95.8%
Revenue weight load factor 67.0% 66.5% + 0.5
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Domestic
Passenger number 21,371,961 22,190,898 96.3%
Revenue passenger Kilometers (000) 16,159,645 16,749,367 96.5%
Avaialable seat Kilometers (000) 25,552,379 26,154,645 97.7%
Revenue seat Kilometers (000) 63.2% 64.0% - 0.8
Revenue cargo ton Kilometers (000) 197,802 194,575 101.7%
Mail ton Kilometers (000) 42,076 41,023 102.6%
Revenue ton Kilomemters (000) 1,450,922 1,511,548 96.0%
Available ton Kilometers 2,996,808 3,059,465 98.0%
Revenue weight load factor 48.4% 49.4% - 1.0
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Total
Passenger number 28,074,449 28,951,467 97.0%
Revenue passenger Kilometers (000) 46,660,087 49,103,634 95.0%
Avaialable seat Kilometers (000) 68,295,847 71,440,860 95.6%
Revenue seat Kilometers (000) 68.3% 68.7% - 0.4
Revenue cargo ton Kilometers (000) 2,392,523 2,408,500 99.3%
Mail ton Kilometers (000) 127,746 117,341 108.9%
Revenue ton Kilomemters (000) 6,577,291 6,800,621 96.4%
Available ton Kilometers 10,623,192 11,018,031 96.4%
Revenue weight load factor 61.7% 61.7% - 0.0
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International results include data from JAL International, Japan Asia Airways Japan Asia Airways, Co., Ltd. (日本アジア航空株式会社 and JALways - Domestic results include data from JAL International, Japan Transocean Air Japan Transocean Air Co., Ltd. (日本トランスオーシャン航空株式会社 , JAL Express, Japan Air Commuter Japan Air Commuter Co., Ltd. (日本エアコミューター株式会社 , Hokkaido Air System Hokkaido Air System Co., Ltd. (株式会社北海道エアシステム , J-Air & Ryukyu Air Commuter. To download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. JAL earnings and traffic results, please visit the Company IR website at http://www.jal.com/en/ir/index2.html . About JAL Asia's largest airline group, the JAL Group (TSE: 9205) serves 213 airports in 33 countries and territories, including 61 airports in Japan. The Group network extends over 235 international passenger, 39 international cargo, and 160 domestic routes. Altogether, the 9 airlines of the JAL Group make a total of over 1,200 flights a day, and in fiscal year 2006 carried nearly 58 million passengers. JAL Group operates a fleet of 276 aircraft including 64 Boeing 747s The Boeing 747, commonly nicknamed the "Jumbo Jet", is an American long-haul, widebody commercial airliner manufactured by Boeing. Known for its impressive size, it is among the world's most recognizable aircraft. and 39 state-of-the-art B777s and is gradually introducing more fuel efficient medium and small-size aircraft such as the new high-tech Boeing 787 and B737 New Generation. For more information, please visit www.jal.com . Source: JAL Contact: JAL Press Office Stephen Pearlman stephen.pearlman@jal.com Tel: +81-3-5460-3109 www.jal.com/en/corporate/ Japan Corporate News Network. All rights reserved. |
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