Japan Airlines (9201): FY2025 Results Summary — Record-High EBIT on Strong International and Mileage/Finance Growth

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Japan Airlines (JAL) reported FY2025 (fiscal year ended March 2026) consolidated revenue of 2,012.5 billion yen, up 168.4 billion yen (+9.1%) year on year, driven by continued strong international passenger business, domestic passenger growth through stimulus measures, and expansion of the highly profitable Mileage/Finance and Commerce business. EBIT reached a record-high 218.0 billion yen, up 45.5 billion yen (+26.4%) year on year and exceeding the company’s upward-revised plan, while net profit was 137.6 billion yen, up 30.5 billion yen (+28.6%) year on year. JAL achieved all of the financial targets in its Medium-Term Management Plan, the final year of the plan, with an EBIT margin of 10.8%, ROIC of 9.5%, and EPS of 306 yen. The company proposed a year-end dividend of 50 yen per share, bringing the full-year dividend to 96 yen per share (payout ratio: 31.3%).

Consolidated Results (Full-Year Actual)

Full Service Carrier, LCC, and Mileage/Finance and Commerce all posted year-on-year growth in both revenue and EBIT. Operating expenses rose 140.5 billion yen (+8.3%) year on year to 1,834.0 billion yen, mainly due to higher Maintenance and Aircraft expenses and increased Personnel expenses from human capital investment, but the cost increase was absorbed by revenue growth. EBITDA rose 17.0% year on year to 384.1 billion yen (EBITDA margin 19.1%, +1.3pt). Fourth-quarter (January-March 2026) revenue alone was 498.7 billion yen, up 8.9% year on year, with EBIT of 38.8 billion yen and an EBIT margin of 7.8%.

Item	FY2025	FY2024	Change (y/y)
Revenue (JPY Bn)	2,012.5	1,844.0	+168.4 (+9.1%)
Operating Expense (JPY Bn)	1,834.0	1,693.4	+140.5 (+8.3%)
EBIT (JPY Bn)	218.0	172.4	+45.5 (+26.4%)
EBIT Margin (%)	10.8%	9.4%	+1.5pt
EBITDA (JPY Bn)	384.1	328.2	+55.8 (+17.0%)
EBITDA Margin (%)	19.1%	17.8%	+1.3pt
Net Profit (JPY Bn)	137.6	107.0	+30.5 (+28.6%)

Segment Results

In the Full Service Carrier business, both revenue and profit increased year on year, driven by international and domestic passenger and cargo demand, improved unit prices, and freighter utilization. In the LCC business, revenue increased year on year as ZIPAIR and SPRING JAPAN captured inbound demand. The Mileage/Finance and Commerce business established a highly profitable model with an EBIT margin of approximately 20%, with both revenue and profit increasing year on year through business model reforms; the number of mileage points issued in the non-aviation business grew at an annual rate of 20%. In the Other segment (Ground Handling, Travel, etc.), both revenue and profit increased year on year, led by the ground handling business.

Segment / Company	FY2025 (JPY Bn)	FY2024 (JPY Bn)	Change (y/y)
Full Service Carrier	1,578.3	1,449.9	+128.3 (+8.9%)
– International PAX	760.0	696.3	+63.6 (+9.1%)
– Domestic PAX	609.0	571.5	+37.5 (+6.6%)
– Cargo/Mail	189.7	163.0	+26.6 (+16.3%)
– Other Revenue	19.5	19.0	+0.5 (+2.7%)
LCC	98.4	88.8	+9.6 (+10.8%)
Mileage/Finance and Commerce	147.6	131.2	+16.4 (+12.5%)
Other (Ground Handling, Travel, etc.)	188.0	174.0	+14.0 (+8.1%)

FY2026 Forecast

For FY2026, JAL forecasts consolidated revenue of 2,095.0 billion yen (+4.1% year on year) but EBIT of 180.0 billion yen (▼38.0 billion yen, ▼17.4% year on year; EBIT margin 8.6%) and net profit of 110.0 billion yen (▼27.6 billion yen, ▼20.1% year on year). The company expects fuel costs to rise to 417.0 billion yen (+5.4%) and non-fuel operating expenses to increase 6.0% year on year. JAL estimates that fuel costs would increase by approximately 28.0 billion yen per month if the average Singapore kerosene price is USD 200/bbl and the exchange rate is 160 JPY/USD (versus the assumption of USD 90/bbl and 150 JPY/USD used for the earnings forecast announced on March 2, 2026), and plans to mitigate the impact through its own earning power, fuel subsidies, and fuel surcharges revised in May, reducing the net negative impact from 11.0 billion yen per month in the first quarter to 2.0 billion yen per month from July onward.

Item	FY2026 Forecast	FY2025 (Actual)	Change (y/y)
Revenue (JPY Bn)	2,095.0	2,012.5	+82.4 (+4.1%)
– Full Service Carrier	1,642.0	1,587.4	+54.5 (+3.4%)
– International PAX	778.0	760.0	+17.9 (+2.4%)
– Domestic PAX	619.0	609.1	+9.8 (+1.6%)
– Cargo and Mail	208.0	189.7	+18.2 (+9.6%)
– Other Revenue	37.0	28.4	+8.5 (+30.0%)
– LCC	132.0	114.9	+17.0 (+14.9%)
– Mileage/Finance and Commerce	233.0	222.2	+10.7 (+4.8%)
– Other (Ground Handling, Travel, etc.)	276.0	259.0	+16.9 (+6.5%)
– Adjustment	▼188.0	▼171.1	▼16.8 (+9.8%)
Operating Expense (JPY Bn)	1,942.0	1,834.0	+107.9 (+5.9%)
– Fuel	417.0	395.4	+21.5 (+5.4%)
– Excluding Fuel	1,525.0	1,438.5	+86.4 (+6.0%)
– Others	27.0	39.5	▼12.5 (▼31.7%)
EBIT (JPY Bn)	180.0	218.0	▼38.0 (▼17.4%)
– Full Service Carrier	104.0	145.0	▼41.0 (▼28.3%)
– LCC	13.0	9.6	+3.3 (+35.4%)
– Mileage/Finance and Commerce	51.0	45.5	+5.4 (+12.0%)
– Other (Ground Handling, Travel, etc.)	14.0	19.1	▼5.1 (▼27.0%)
– Adjustment	▼2.0	▼1.3	▼0.6 (+46.5%)
EBIT Margin (%)	8.6%	10.8%	▼2.2pt
EBITDA (JPY Bn)	360.0	384.1	▼24.1 (▼6.3%)
EBITDA Margin (%)	17.2%	19.1%	▼1.9pt
Net Profit (JPY Bn)	110.0	137.6	▼27.6 (▼20.1%)

Shareholder Returns

JAL proposed a year-end dividend forecast of 50 yen per share for FY2025, bringing the full-year dividend to 96 yen per share, with a payout ratio of 31.3%. The company stated that, although its financial results exceeded the upward-revised plan, it would not change the dividend forecast in light of the recent impact of the situation in the Middle East.

Item	FY2025
Year-end dividend forecast	50 yen/share
Annual dividend	96 yen/share
Payout ratio	31.3%

Medium-Term Plan / Topics

FY2025 was the final year of JAL’s Medium-Term Management Plan, and the company achieved all of its financial targets: an EBIT margin of 10.8% against a target of 10% or higher, ROIC of 9.5% against a target of 9%, and EPS of 306 yen against a target of the ¥290 level. Revenue was the highest since JAL’s re-listing in every quarter of FY2025, with year-on-year growth in both revenue and profit each quarter.

JAL also announced the acquisition of approximately 18.3% of the shares of Lifenet Insurance Company from au Financial Holdings Corporation, together with a capital and business partnership agreement with Lifenet Insurance. The partnership is intended to combine JAL’s mileage assets with Lifenet Insurance’s expertise in developing insurance products, expanding JAL’s mileage customer base and driving growth of the Mile & Life business under the JAL Group Management Vision 2035.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.