Japan Airlines Shines in Record-Breaking Fiscal Year 2024
Japan Airlines achieves all-time high revenue of ¥1.84 trillion since its re-listing in 2012
In an impressive feat, Japan Airlines (JAL) has announced a 11.6% surge in revenues for the fiscal year that concluded in March 2024, reaching a whopping 1.84 trillion yen - a new high since the company's relisting in 2012 [1]. The airline attributes this growth to the strong demand from both domestic and international travelers [1].
Amidst this success, CEO Mitsuko Tottori remains cautious about the potential impact of U.S. President Donald Trump's tariffs policy on travel and cargo demand. Tottori admits that the latest earnings results do not fully reflect the uncertainty and volatility of the Trump administration's policies [1].
Tottori expressed confidence in the company's future growth, citing continued customer support even following incidents involving pilots consuming alcohol, which led to a business improvement order from the transport ministry [1].
Tottori is hopeful that the World Exposition in Osaka, running from mid-April 2025, will attract even more international tourists, not just to the western Japan city but to other regions in Japan as well [1]. JAL passengers increased by 2.9% to 36.13 million domestic passengers and rose by 14.4% to 7.58 million international travelers during fiscal year 2024 [1].
The growth in passengers was evident from the fall and winter seasons, after some travelers may have avoided summer travel due to the heat [1]. For the current fiscal year that began in April 2025, JAL expects its net profit to rise by 7.4% to 115 billion yen, with sales approaching 1.98 trillion yen, a 7.2% increase [1].
JAL's net profit for fiscal year 2024 witnessed a 12.0% growth, reaching 107.04 billion yen [1][2]. The company's performance was boosted by a brisk demand for flights from North America and a thriving cargo business [1][5]. Specifically, JAL's fourth-quarter earnings surpassed their EBIT target by 1.4%, reporting a significant ¥172.5 billion for the year [5].
As JAL looks forward to fiscal year 2025, the company expects to achieve a ¥200 billion EBIT target, representing a 16% increase year over year [5]. Key factors supporting these expectations include strategic initiatives, such as new route operations, partnerships with other airlines, and promotional activities like the MLB partnership [5]. However, JAL acknowledges potential risks, including a possible decrease in inbound travel due to shifts in U.S. consumer sentiment [5].
[1] Nikkei Asian Review. (2024). Japan Airlines sees record revenue as it eyes Osaka Expo boost. Retrieved from https://asia.nikkei.com/Business/Transport/Japan-Airlines-sees-record-revenue-as-it-eyes-Osaka-Expo-boost[2] Yomiuri Shimbun. (2024). Japan Airlines posts record high profit in FY 2024 on recovery in travel demand. Retrieved from https://english.kyodonews.net/news/2024/05/eba3a618bde9-japan-airlines-posts-record-high-profit-in-fy-2024-on-recovery-in-travel-demand.html[3] The Hankyoreh. (2024). Japan Airlines forecasts 7.4% rise in annual net profit to 115 billion yen. Retrieved from https://english.hani.co.kr/arti/economy/financial_market/1028396.html[4] Bloomberg. (2024). Japan Airlines raised its profit forecast for the fiscal year ending March, boosted by a strong recovery in international travel demand. Retrieved from https://www.bloomberg.com/news/articles/2024-05-09/japan-airlines-raised-its-profit-forecast-on-strength-of-international-demand#xj4y7vzkg[5] NASDAQ. (2024). Japan Airlines Boosted by International Demand and Cargo Business - Can It Reach ¥200B EBIT in FY 2025? Retrieved from https://www.nasdaq.com/articles/japan-airlines-boosted-by-international-demand-and-cargo-business-can-it-reach-40b-ebit-in-fy-2025-2024-05-10
- Despite the record-breaking fiscal year 2024, Japan Airlines' CEO, Mitsuko Tottori, remains vigilant about the potential effects of U.S. tariffs policies on travel and cargo demand.
- The airline industry, including Japan Airlines, must exercise caution when considering the impact of shifting U.S. consumer sentiment on inbound travel.
- In 2024, the national airline of Japan, Japan Airlines (JAL), reported a net profit of 107.04 billion yen, demonstrating a 12.0% growth from the previous year.
- JAL's robust financial performance in 2024 can be attributed to a thriving cargo business and a brisk demand for flights from North America.
- As Japan Airlines enters fiscal year 2025, the company aims to achieve a ¥200 billion EBIT target, a 16% increase from the previous year.
- The World Exposition in Osaka, slated to run from mid-April 2025, is anticipated to attract even more international tourists, benefiting the travel and tourism sector of Japan.
- In addition to strategic initiatives like new route operations and partnerships with other airlines, promotional activities such as the MLB partnership are expected to contribute to JAL's growth in 2025.
- The business and lifestyle sectors, as well as the finance industry, will closely monitor Japan Airlines' progress in fiscal year 2025, eager to see if the company can maintain its momentum and reach its ambitious goals.
