JAL Group (JAL) on October 31 announced the consolidated financial results for the first six months of the fiscal year of 2016 – the period from April 1 to September 30, 2016.
During the first six months of the fiscal year ending March 31, 2017 (April 1, 2016 to September 30, 2016, hereinafter referred to as “the second quarter”), the Japanese economy showed weakness while consumer confidence stabilized. Due to effects of the earthquakes that struck Kumamoto Prefecture in the Kyushu region in April (the “2016 Kumamoto Earthquakes”), the demand in Kyushu market declined. In overseas economies, weakness was observed in new emerging markets in Asia and resource-rich countries such as China’s economic slowdown. Crude oil prices, which affect our fuel purchasing costs, international passenger revenue and international cargo revenue, have been lower than the year before, and the JPY/USD foreign exchange rate showed the Japanese yen getting stronger. Under these economic conditions, we worked to increase profit consciousness of every staff by aligning our actions with the JAL Philosophy and the amoeba management system, realizing greater management efficiencies, and providing the finest service to our customers anchored in our firm commitment to flight safety in order to reach the targets set out in Rolling Plan 2016 for the JAL Group Medium Term Management Plan announced on February 18, 2016, according to JAL.
As a result of the above, consolidated operating revenue decreased by 5.2% year-on-year to 651.9 billion yen and operating expense decreased by 1.5% to 559.4 billion yen, while operating income decreased by 23.0% year on year to 92.4 billion yen and ordinary income decreased by 26.8% to 89.8 billion yen. Net income attributable to owners of the parent for the second quarter was 71.4 billion yen, down 30.9% year on year.
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