Japan's JAL and ANA see Q1 revenue growth but profits drop

Japan's main airlines, Japan Airlines (JAL) and ANA Holdings, reported increases in revenue for the quarter ended in June, but both saw reduced net profits due to higher maintenance and labor costs. JAL reported on Wednesday an 11% year-on-year increase to 424b yen ($2.8b) in the first three months of the financial year ending March 2025, while net profit was down 39% to 13.9b yen. ANA reported the highest revenue for the April-June quarter, with a 12% year-on-year increase to 516.7b yen. Net profit decreased by 19% to 24.7b yen. Rising demand from inbound tourism contributed to revenue growth. In June, Japan's visitor arrivals hit a record high of 3.13 million, according to the Japan National Tourism Organization. Both airlines saw a large upturn in international passengers. JAL gained 13% growth in revenue from full-service international flights to 166.1 billion yen "due to strong inbound demand and a recovery in business demand from Japan to other countries," Mitsuko Tottori, the company's CEO, said at a news conference on Wednesday. A recovery in demand for Japanese business passengers "Demand for international flights is in line with expectations, and ticket prices continue to remain high," she said. The full-service international airline unit of ANA also grew 13% to 189.5b yen. Demand for North American routes was notably strong, particularly from business travelers out of Japan, according to Kimihiro Nakahori, ANA's chief financial officer. The company raised ticket prices on its North America routes.<br/>