Regarding the “JAL Group Management Vision 2035”

Overview of Management Vision 2035

JAL Group has formulated the "JAL Group Management Vision 2035," aiming to build a business portfolio resilient to environmental changes, targeting EBIT of 300 billion yen by fiscal year 2030 and over 350 billion yen by fiscal year 2035. As growth investments, including fleet renewal and technology investments to strengthen new business areas, it will strategically allocate more than 2 trillion yen of management resources over the next five years.

Business Portfolio Transformation and Growth Strategy

In the international route business, JAL plans to expand Available Seat Kilometers (ASK) to 1.3 times that of fiscal year 2025, aiming for growth through both full-service carrier (FSC) and low-cost carrier (LCC) models. To meet strong cargo demand between Asia and Europe/North America, it will expand provision of large cargo aircraft. The Mile & Life business will make strategic investments of 80 billion yen over five years, targeting growth 3.3 times that of fiscal year 2025. In the domestic route business, cost containment through fuel surcharges and operational efficiency will be advanced, targeting EBIT of 60 billion yen and a profit margin above 10% by fiscal year 2028.

ESG, DX, and Safety Initiatives

Aiming for net zero CO2 emissions by 2050, JAL sets the goal of reducing CO2 emissions by 10% by fiscal year 2030. The company is advancing creation of new businesses in next-generation mobility and constructing the digital platform "AMOP®." Annual investment of approximately 52 billion yen in human resources and digital transformation (about 260 billion yen over five years) will improve productivity and establish sustainable operational systems. Safety will maintain world-class quality standards with zero major incidents.

Financial Strategy and Dividend Policy

JAL targets an EBIT margin above 10% and ROIC above 9%, maintaining an equity ratio around 45%. The dividend payout ratio is set around 35%, with a total shareholder return ratio guideline of 35-50%, strengthening shareholder returns through increased dividends alongside profit growth and flexible share buybacks. Bold investments of about 400 billion yen annually will accelerate growth. The EBIT forecast for fiscal year ending March 2026 was upwardly revised to 205 billion yen, and dividends are planned to increase from 92 yen to 96 yen per share.