Japan Airlines delivered its strongest quarterly performance since relisting, with operating earnings more than doubling to ¥45.5 billion ($314 million) in the three months ended June 30. The carrier achieved record first-quarter results as surging inbound tourism and recovering business travel offset pressures elsewhere in Japan’s aviation sector.
Revenue climbed 11.1% to ¥471.0 billion ($3.3 billion), driven by international passenger operations that generated ¥184.9 billion, an 11.4% increase from the prior year. Load factors improved across both international and domestic routes, with the carrier benefiting from what executives described as exceptionally strong demand from North American travelers.
The results contrast sharply with broader industry concerns about softening travel demand. While some Japanese travel companies reported steep domestic market declines in March, JAL President Mitsuko Tottori noted that “demand from inbound passengers, especially among those from North America, was strong” during the carrier’s earnings announcement.
JAL’s low-cost operations proved particularly robust, with revenue jumping 25.4% as ZIPAIR expanded to ten destinations and Spring Japan capitalized on recovering China routes. The carrier’s diversification strategy showed results, with mileage and finance commerce revenue rising 9.3% to ¥49.7 billion.
Operating margins expanded significantly, reaching 9.7% from 5.2% in the comparable period. Fuel costs remained flat despite higher capacity, helped by declining oil prices and yen strengthening. The carrier maintained conservative full-year forecasts calling for ¥200.0 billion in operating profit, though management cautioned that second-quarter international revenue may face headwinds from reduced fuel surcharges.
JAL’s performance underscores how Japan’s major carriers are capitalizing on tourism recovery while navigating currency volatility and shifting travel patterns that have challenged other industry players.
