Japan Airlines posted robust third-quarter earnings, with operating profit soaring 55.2% to 58.5 billion yen ($383 million) as international travel demand recovered strongly, particularly on North American and European routes.
Revenue for the October-December quarter climbed 13% to 484.1 billion yen, driven by a 13.2% increase in international passenger revenue. The carrier’s load factor on international routes improved to 84.3%, up 5.6 percentage points from a year earlier.
JAL’s budget airline subsidiaries ZIPAIR and SPRING JAPAN also contributed to growth, with the low-cost carrier segment reporting a 20.8% revenue increase. ZIPAIR maintained strong performance while SPRING JAPAN showed significant revenue improvements.
Despite the positive results, rising costs posed challenges. Operating expenses grew 9.3% to 429.4 billion yen, with maintenance costs jumping 19.2%. However, lower fuel prices provided some relief, with fuel costs declining 4.3%.
The airline maintained its full-year earnings forecast and dividend plans unchanged. JAL continues to expand its fleet, adding four Airbus A350-1000 aircraft during the quarter while retiring one Boeing 777-300ER.
The company’s free cash flow remained positive at 29.4 billion yen despite increased capital investment, reflecting its solid financial position with an equity ratio of 40.7%.
