Annual Report Japan Airlines Corporation at a Glance Consolidated Financial Highlights Consolidated Operating Highlights Message from the Management Interview with the Group CEO Dream Skyward II: Stepping-stone to become "the world' s No.1 airline group" Review of Operations Corporate Social Responsibility (CSR) Activities Management's Review and Analysis of Financial Position Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Stockholder' Equity (Note8) Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Auditors Consolidated Subsidiaries JAL and Its Subsidiaries and Affiliates Directory JAL Group Route Network Board of Directors Investor Information

Consolidated Statements of Stockholders’ Equity (Note 8)

Japan Airlines Corporation and Consolidated Subsidiaries

Millions of yen
	Number of shares of common stock issued	Common stock	Capital surplus	(Accumulated deficit) retained earnings	Net unrealized gain (loss) on other securities, net of taxes (Note 4)	Translation adjustments	Common stock in treasury	Total
Balance at April 1, 2002	1,980,465,250	¥100,000	¥158,529	¥570	¥2,095	¥(4,717)	¥(7,467)	¥249,009
Net income for the year ended March 31, 2003				11,645				11,645
Bonuses to directors and statutory auditors				(35)				(35)
Transfer from capital surplus to retained earnings			(11,301)	11,301				−
Other			(51)		(2,875)	(2,734)	(701)	(6,363)
Balance at March 31, 2003	1,980,465,250	100,000	147,175	23,481	(780)	(7,451)	(8,168)	254,256
Net loss for the year ended March 31, 2004				(88,619)				(88,619)
Cash dividends			(7,844)					(7,844)
Bonuses to directors and statutory auditors				(38)				(38)
Increase resulting from change in scope of consolidation				144				144
Other			(2,652)		3,567	(2,506)	2,966	1,375
Balance at March 31, 2004	1,980,465,250	¥100,000	¥136,678	¥(65,031)	¥2,787	¥(9,958)	¥(5,202)	¥159,273
Thousands of U.S. dollars (Note 2)
		Common stock	Capital surplus	(Accumulated deficit) retained earnings	Net unrealized gain (loss) on other securities, net of taxes (Note 4)	Translation adjustments	Common stock in treasury	Total
Balance at March 31, 2003		$952,380	$1,401,666	$223,628	$(7,428)	$(70,961)	$(77,790)	$2,421,485
Net loss for the year ended March 31, 2004				(843,990)				(843,990)
Cash dividends			(74,704)					(74,704)
Bonuses to directors and statutory auditors				(361)				(361)
Increase resulting from change in scope of consolidation				1,371				1,371
Other			(25,257)		33,971	(23,866)	28,247	13,095
Balance at March 31, 2004		$952,380	$1,301,695	$(619,342)	$ 26,542	$(94,838)	$(49,542)	$1,516,885

The accompanying notes are an integral part of these consolidated statements.

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