Summarizing the business environment for FY2019
- U.S.-China trade frictions continued to have lingering effects for the cargo business.
- The airline was forced to cancel numerous flights during the autumn of 2019 due to natural disasters, including a set of super typhoons that affected the entire nation of Japan.
- Although the Japanese government raised the level of consumption taxes at the beginning of October 2019, the action did not adversely affect the travel habits of local consumers.
- Since January 2020, the impact of the novel coronavirus (COVID-19) severely affected the global economy, including the market in Japan.
- The fluctuation of crude oil prices, which affect fuel costs and international passenger and international cargo revenues, remained stable through most of FY2019. However, in March 2020, due to the coordinated production cuts by OPEC and the global recession, oil prices have since dropped sharply. The JAL Group will continue to take strategic measures to mitigate the impact on its financial performance by utilizing hedging techniques and applying fuel surcharges on international flights, while monitoring economic trends that may affect the price of crude oil and the company`s financial performance.
Highlighting the Consolidated Financial Results for FY2019
- Operating Revenue decreased 5.1% year over year to 1,411.2 billion yen
- Operating Expenses decreased 0.0% year over year to 1,310.5 billion yen
- Operating Profit decreased 42.9% year over year to 100.6 billion yen
- Ordinary Profit decreased 38.0% year over year to 102.5 billion yen
- Net Profit Attributable to Owners of the Parent decreased 64.6% year over year to 53.4 billion yen