FY March 2026 Financial Summary [IFRS] (Consolidated)

Summary of Business Results

For the fiscal year ending March 2026, consolidated revenue reached ¥2.0125 trillion (up 9.1% Year-over-Year), and operating expenses totaled ¥1.834 trillion (up 8.3% Year-over-Year). Earnings before interest and taxes (EBIT) were ¥218.0 billion (up 26.4% Year-over-Year), and net income attributable to owners of the parent was ¥137.6 billion (up 28.6% Year-over-Year). Growth was driven by increased international passenger numbers, expanded cargo demand, and higher revenue from the mileage, finance, and commerce businesses. Although the low-cost carrier (LCC) business achieved higher sales, its EBIT declined. Efforts continue toward introducing state-of-the-art aircraft, launching new routes, and enhancing service quality.

Financial Position and Dividend Status

Total assets increased by ¥403.8 billion from the previous fiscal year-end to ¥3.1987 trillion, and the equity ratio attributable to owners of the parent rose to 40.3%. The annual dividend was maintained at ¥96 per share (¥50 for the year-end dividend and ¥48 planned for the interim dividend), resulting in a dividend payout ratio of 31.3%, demonstrating a commitment to continuous and stable dividend distributions. Share buybacks were also implemented as part of shareholder returns efforts. The earnings guidance for fiscal year ending March 2027 anticipates revenue of ¥2.095 trillion, EBIT of ¥180.0 billion, and net income of ¥110.0 billion.

Outlook and Risks

Japan Airlines Group announced its 2035 Management Vision, aiming to achieve EBIT of ¥300.0 billion by fiscal 2030 and ¥350.0 billion by fiscal 2035. This includes accelerating strategic investments in larger aircraft for international routes and the mileage and lifestyle businesses. At the same time, attention is paid to political and economic uncertainties such as prolonged developments in Ukraine and tensions in the Middle East, while pursuing sustainable growth. Key risks include aviation safety, natural disasters, climate change, and fluctuations in the international geopolitical environment.

Capital Policy and Capital Alliances

On April 30, 2026, the company issued its first series of bond-type preferred shares, enabling agile capital policy through reductions in capital stock and capital surplus. Additionally, a capital and business alliance agreement was concluded with Lifenet Insurance Company Limited to jointly develop and establish sales frameworks for insurance products. These capital policy measures are expected to have a minor impact on operating results.