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JAL Group Reports Extraordinary Financial Performance for Q2 FY2026

On October 30, 2025, the JAL Group announced its Q2 financial results for the fiscal year ending March 2026, covering the period from April 1 to September 30, 2025. The results reflect a remarkable recovery and growth in both aviation and non-aviation revenues.

Overview of Financial Results

Total revenue reached an impressive ¥983.9 billion, registering a 9.1% increase compared to the previous year, marking the highest performance since the company's relisting. This surge in revenue was attributed to both the airline operations and ancillary services contributing positively. The EBIT for this quarter amounted to ¥109.7 billion, which is a substantial year-on-year increase of 28%. The company confirmed its full-year EBIT forecast of ¥200 billion and a net profit forecast of ¥115 billion, ensuring a stable growth outlook. The board of directors also declared a mid-term dividend of ¥46 per share and approved a buyback of up to ¥20 billion worth of shares to enhance shareholder returns.

Segment Performance

Full-Service Carrier

The full-service carrier segment showed remarkable resilience, backed by a robust increase in international and domestic passenger numbers. Revenues in this segment surged by 8.9% to ¥775.1 billion, with EBIT increasing by 34.1% to ¥76.2 billion. The international travel segment adaptation to growing demand was crucial, with inbound tourism and recovering business travel contributing to a 10.1% rise in passenger numbers. Revenue yield also increased by 8% driven by competitive pricing strategies.

Cargo Services

In cargo operations, the expansion of the dedicated cargo network and strategic focus on North American routes particularly benefited the segment. Gains were observed in both international and domestic cargo sales, contributing positively to total revenues.

LCC Operations

While the low-cost carrier segment benefitted from a 10.4% rise in revenues, it reported a decline in EBIT by 9.5% to ¥7 billion. Despite difficulties, both ZIPAIR and SPRING JAPAN adapted well, expanding their network and capturing passenger demand effectively.

Financial and Commerce Services

This segment saw a steady profit increase, reporting a 9.4% rise in revenues, with significant contributions from JAL card transactions. This stability points towards a positive trend in ancillary services which continues to bolster the overall profitability of the airline.

Future Outlook and Initiatives

Looking ahead, JAL Group remains committed to sustainable growth through several initiatives:

• - The airline is launching new routes including flights between Naha and Taipei and expanded services to Delhi.
• - They are enhancing cargo capabilities through collaboration with JR East's rapid delivery services, facilitating faster exports of local goods.
• - Furthermore, the company is actively participating in the development of sustainable aviation fuel (SAF) and is investing in next-generation technology to lower carbon emissions.

Ongoing Sustainability Efforts

JAL is prioritizing sustainability and aiming for innovation in its operations. With planned investments in SAF and the introduction of hydrogen-powered airport vehicles, the airline is on a path towards net-zero emissions by enhancing its operational framework. The latest initiatives include a new immersive theater experience at the Osaka-Kansai Expo, showcasing the airline's commitment to enhancing passenger experiences while promoting tourism.

Conclusion

In summary, JAL Group's strong financial performance for Q2 of FY2026 exemplifies effective management decisions amidst an evolving market landscape. With a focus on enhancing customer experiences and achieving sustainability targets, the airline is well-positioned for future successes.