JAL rebounds to first quarter profit as passenger revenues surge

Japan Airlines Group swung back to profitability in its fiscal Q1, amid an uptick in passenger revenues past pre-pandemic levels. The Tokyo-based airline group reported an operating profit of Y31.3b ($219m) for the three months to 30 June, reversing the Y27.6b loss it posted in the year-ago period. Compared to the same quarter in pre-pandemic 2019, the airline group – comprising mainline carrier JAL and low-cost units Zipair and Spring Japan – saw operating profits increase 57%. JAL Group reported a 42% jump in operating revenue to more than Y381b, led primarily by an increase in passenger revenue following the reopening of Japan’s international borders. Mainline operator JAL saw international passenger revenues more than double to Y149b year on year, amid a two-fold increase in passenger volume. International traffic rose 88% compared to the year-ago period, while capacity grew 66%. JAL notes that while strong demand remains for inbound flights to Japan, it is beginning to see demand recovery in outbound flights, which were slower to recover following the reopening of Japan’s borders in late-2022. JAL’s domestic revenue rose 38% year on year to Y122b, as passenger numbers rose 41%. Traffic grew at a similar rate, outpacing a 6% increase in capacity. The low-cost business, meanwhile, saw revenue jump four-fold, led by Zipair, which saw passenger revenue increase nearly six-fold year on year. <br/>