JAL results in 65% reduction in net profit for FY2019, putting off financial forecast announcement for FY2020

JAL Group resulted in large reduction in consolidated revenues and profits for FY2019 ended March 31 2020, posting operating revenue of 1,411 billion JPY (-5.1% year on year), operating profit of 100.6 billion JPY (-42.9%), ordinary profit of 102.5 billion JPY (-38%) and net profit of 534 billion JPY (-64.6%). 

For international passenger operations, JAL had suffered from lower demands for Japan-outbound business passengers under the weakened global economy and leisure passengers on Hong Kong and South Korea routes due to the political instabilities as well as the coronavirus shocks in the fourth quarter. As a result, revenue passengers were down 9.3$ to 9.13 million, and passenger revenue down 10.3% to 476.2 billion JPY.

For domestic passenger operations, the passenger demand had drastically dropped since February due to spread of the coronavirus, despite steady growth in 2019, particularly in the 10-consecutive Golden Week holiday period. As a result, revenue passengers were down 3.1% to 348.6 million, and passenger revenue down 2.6% to 514.6 billion JPY.

JAL has postponed announcement of its financial forecast for FY2020 ended March 31 2021 because the expected impact from the coronavirus is not foreseen yet.

JAL  has determined to not provide a year-end dividend payment to the shareholders in order to secure liquidity at hand. 

Let us hear your VOICEPlease feel free to leave any comments or opinions.