Japan Airlines (JAL) Group has experienced a significant recovery in the fiscal year ending March 2024, with revenue and profit witnessing substantial growth. The post-pandemic demand resurgence, particularly in international travel, propelled JAL’s revenue to a remarkable JPY 1 trillion 651.8 billion, reflecting a substantial 20% increase year-on-year. The company’s EBIT also soared to JPY 145.2 billion, exhibiting a staggering 120% growth compared to the previous fiscal year.
The surge in revenue and profit can be attributed to the strong rebound in demand following the resumption of free travel post-COVID-19. Notably, international passenger numbers surpassed pre-pandemic levels, with inbound demand experiencing a significant uptick. The company witnessed a 1.5-fold increase in passenger numbers compared to the previous year, with its subsidiary ZIPAIR achieving an impressive 2.3-fold increase. Moreover, strategic efforts to stimulate domestic demand, including promotional campaigns during off-peak seasons, contributed to a 1.2-fold increase in domestic passenger numbers, further bolstering overall recovery.
Despite facing challenges such as increased costs due to factors like currency depreciation and global inflation, JAL effectively managed costs and improved yield, resulting in enhanced profitability. As a result, both EBIT and net profit for the fiscal year surpassed previous year’s levels, showcasing the company’s resilience and adaptability in navigating post-pandemic uncertainties.
In the full-service carrier business domain, both international and domestic passenger businesses witnessed significant growth in passenger numbers and revenue. The international cargo business also flourished, leveraging robust e-commerce demand and focusing on high-value cargo, leading to a notable increase in revenue. The low-cost carrier (LCC) business domain achieved profitability in FY2023, with ZIPAIR expanding its network and fleet size, aiming to capture new market segments and further increase capacity. Additionally, initiatives in the mileage, infrastructure, and other business domains contributed to a steady increase in revenue and profits.
Looking ahead, JAL aims for sustained growth by focusing on business model reforms and addressing challenges posed by global uncertainties and resource shortages. The company plans to continue enhancing its product and service offerings, such as introducing advanced aircraft and expanding its route network to new destinations. Moreover, JAL remains committed to its sustainability goals, including achieving net zero carbon emissions by 2050. The company will continue to innovate and invest in initiatives that contribute to environmental conservation and societal well-being while ensuring the highest standards of safety and service quality.
With a stellar performance in FY2023 and a robust outlook for the future, Japan Airlines (JAL) Group is poised for continued success and expansion. By leveraging its strengths, adapting to evolving market dynamics, and remaining committed to sustainability, JAL reaffirms its position as a leading player in the global aviation industry.
