JAL reports mixed first half finances


JAL Group has announced its financial results for the first half of 2014 ended September 30. It reported revenue of ¥683.7bn, an increase of 3.7% over the first half of 2013. The company also recorded operating income of ¥92.8bn, a fall of 3.1% year-on-year. Accordingly JAL’s margin stood at 13.57%.

The volume of international cargo JAL handled during the period in terms of Revenue Cargo Ton Kilometres (RCTK) increased by 14.1% year-on-year, and international cargo revenue increased by 9.6%, to ¥28.8bn. This growth was largely attributable to JAL’s capture of automotive shipments from Japan, spurred by the growth of exports especially to North America. It was also aided by better revenue management and efficiently captured transit shipments such as perishables.

JAL’s domestic cargo operations were positively affected by the front-loaded increase in demand prior to the consumption tax hike in Japan which continued to the beginning of the first quarter. A modal shift from surface transport to air transport due to a shortage of trucks, which increased air freight volumes temporarily, also contributed to the company’s result. JAL also attracted robust perishable shipments over the period. However due to the decrease in supply, the volume of domestic cargo the company handled measured in RCTK declined by 3.1% year-on-year, and domestic cargo revenue was ¥12.3bn, down 2.8% from 2013’s first half result.

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