The FINANCIAL — The JAL Group (JAL) announced today, the consolidated financial results for the first three quarters of fiscal year 2012 (year ending March 31, 2013).
During this nine-month reporting period, post-quake restoration demand continued to drive the Japanese economy; however, the economic rebound was blunted by a slowdown in the global economy. Recently, signs of a business recovery were seen following the change of administration in Japan, such as the weakening of the yen, and a rise in stock prices. On the other hand, the third quarter encountered risks of possible economic stagnation due to the economic slowdown in Europe, China, etc., deflation in Japan, strained diplomatic relations due to territorial issues, and such, causing the outlook to remain opaque.
Under these economic conditions, international travel demand to Europe, North America and Southeast Asia have been positive and on the domestic front, response to newly established year-end special fares meant to boost demand have been favorable, thus enabling growth in sales. In the face of fuel costs, increase in expenses used in strengthening product and service competitiveness among others, JAL strived to raise profit consciousness through the divisional profitability accounting system, and achieve greater business effectiveness, founded on its strong commitment to ensuring flight safety, with the aim to achieve the targets in the Mid-Term Management Plan.
Consequently, consolidated operating revenue during the reporting period increased year-on-year by 3.6% to 942.0 billion yen, while operating expense increased 4.9% to 783.8 billion yen. As Japan Airline announced, operating income at 158.1 billion yen was 2.2% less than last year, and ordinary income declined 1.2% to 154.2 billion yen. Total net income of 140.6 billion yen for the three quarters represents a 3.7% decline from last year.