JAL Group Reports Strong Financial Performance for Q1 FY2026 with Significant Growth Across Business Segments
The JAL Group has released its consolidated financial results for the first quarter of the fiscal year ending March 2026, covering the period from April 1, 2025, to June 30, 2025. The airline group delivered a strong performance in the first quarter, marked by double-digit revenue growth, robust international and domestic travel demand, and increased contributions from its low-cost carrier (LCC) and finance-related businesses.
Consolidated Financial Overview
For the quarter, JAL Group reported consolidated revenue of JPY 471.0 billion, reflecting an 11.1% increase compared to the same period last year. This growth was fueled by sustained recovery in global travel demand, expansion in cargo operations, and increased commercial activity within the group’s loyalty and financial businesses.
Operating expenses rose by 7.2% year-on-year to JPY 435.4 billion. While lower fuel prices and a relatively stronger Japanese yen provided some cost relief, rising inflation and strategic investments in workforce development contributed to the increase in total expenditures. Despite this, the company achieved significant profit growth.
Earnings before interest and taxes (EBIT) doubled year-on-year, reaching JPY 45.5 billion, a 105.7% increase. Net profit surged to JPY 27.0 billion, marking a 93.7% year-on-year rise. This performance reflects the group’s ability to navigate macroeconomic pressures while capitalizing on favorable market conditions.
Performance by Business Segment
Full Service Carrier (FSC) Business
The full-service operations, which include international and domestic flights under the Japan Airlines brand, generated revenue of JPY 369.3 billion, up 10.4% year-on-year. EBIT for this segment was JPY 30.7 billion, an impressive 288.3% increase from the previous year. The sharp improvement in earnings was supported by increased passenger volumes, efficient capacity management, and growth in cargo transportation.
International Passenger Operations
JAL’s international passenger business continued its recovery trajectory with sustained inbound travel demand, especially from Asia and North America. At the same time, outbound business travel from Japan showed notable signs of improvement. This dual trend resulted in an 11.7% increase in international passenger volume and an 11.4% year-on-year growth in passenger revenue.
Strategic initiatives in revenue management, network planning, and service enhancement allowed the company to tap into the high-yield premium travel segment while maintaining strong load factors across leisure routes.
Domestic Passenger Operations
On the domestic front, JAL achieved a 13.3% year-on-year increase in passenger numbers. This was largely driven by dynamic pricing strategies, route optimization, and marketing efforts to stimulate demand during off-peak periods. Domestic passenger revenue rose by 7.6% compared to the same quarter in the previous year.
Despite intense competition from other carriers and alternative transportation modes, JAL’s domestic network remained resilient, supported by strong travel demand during holiday periods and business-related travel in major metropolitan corridors.
Cargo and Mail Services
JAL’s cargo division continued to be a critical revenue contributor, particularly in the international market. The expansion of the freighter network and targeted efforts to capture cargo demand from China and broader Asia to North America led to increased revenue. Demand for e-commerce-related air freight and supply chain recovery in key manufacturing sectors further boosted volumes.
In the domestic market, cargo revenue also showed steady growth. The joint operation of cargo aircraft with the Yamato Group contributed to greater efficiency and service expansion, helping the group better serve logistics companies and retailers across Japan.
Low-Cost Carrier (LCC) Business
Reflecting strong growth in the budget travel segment, JAL’s LCC operations—comprising ZIPAIR and SPRING JAPAN—generated JPY 30.4 billion in revenue, a 23.2% increase from the previous year. EBIT climbed by 91.9% to JPY 4.2 billion, underscoring the rising profitability of this division.
ZIPAIR
ZIPAIR delivered another solid quarter, fueled by robust inbound travel demand and strategic route additions. The newly launched route to Houston in March 2025 contributed to increased capacity and higher load factors. ZIPAIR continued to appeal to cost-conscious international travelers while maintaining competitive service standards.
SPRING JAPAN
SPRING JAPAN benefited from strong passenger demand on routes connecting Japan with major Chinese cities such as Beijing and Shanghai (Pudong). The airline’s positioning as a bridge between East Asia’s key travel hubs supported stable revenue growth and higher aircraft utilization.
Both LCC brands are expected to play a larger role in JAL Group’s international strategy going forward, particularly in expanding its footprint in Asia and the Americas.
Mileage, Finance, and Commerce Segment
The Mileage, Finance, and Commerce business segment also experienced steady growth during the quarter. Revenue for this segment rose by 7.9% year-on-year to JPY 49.7 billion, while EBIT increased 15.2% to JPY 10.2 billion.
The issuance of airline miles grew in tandem with rising passenger numbers. Enhanced credit card offerings and increased use of JAL cards for daily payments contributed to the higher volume of issued miles. Strategic partnerships with retail and financial institutions also supported the segment’s performance.
The group sees continued potential in this area, as it diversifies into non-aviation revenue streams and deepens engagement with its customer base through digital platforms and loyalty initiatives.
Other Operations
JAL’s ground handling and support services division, which includes airport operations, baggage services, and maintenance support, recorded a revenue increase of 9.4% year-on-year, reaching JPY 59.9 billion. EBIT for the segment stood at JPY 1.3 billion, maintaining stable profitability.
Strong air travel recovery led to higher ground service demand at domestic and international airports. The group’s investment in automation and digital tools also enhanced operational efficiency and customer service at ground level.
Looking ahead, JAL Group remains cautiously optimistic about the fiscal year ending March 2026. Key drivers include continued international travel recovery, growth in the LCC segment, and expanding ancillary and non-aviation businesses. However, the company acknowledges potential risks, such as fuel price volatility, exchange rate fluctuations, and geopolitical uncertainties that may affect travel patterns.
As part of its broader growth strategy, JAL is expected to continue investing in digital transformation, sustainability, and workforce development. These initiatives aim to strengthen the company’s competitiveness and support its long-term vision of becoming one of the world’s most preferred and sustainable airline groups.
JAL Group’s first-quarter results for FY2026 underscore its resilience, adaptability, and capacity for growth in a post-pandemic aviation landscape. With solid performances across all major business segments, the company is well-positioned to build on its momentum and pursue new opportunities in an evolving global travel environment.