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Representative Director, President
Japan Airlines Co., Ltd.

November, 2022

We would like to express our gratitude to our shareholders and investors for your continued support.

Following positive EBITDA and operating cash flow in the first quarter, the JAL Group achieved positive EBIT in the second quarter for the first time since the pandemic.

Air travel demand is steadily recovering. For international flights, the recovery of demand to and from Japan is in full swing due to the relaxation of border measures, in addition to the robust transit demand through Japan. Domestic flights have also seen a strong recovery in tourism demand thanks to nationwide travel support and other measures to stimulate demand. In addition, cargo demand continued to be strong, with high unit prices maintained due to tight global supply and demand.

The JAL Group has strived to maintain employment and improve knowledge and skills for safe operations while thoroughly reducing costs. The replacement of domestic mainstay aircraft with the Airbus A 350 has been largely completed, and we are already well positioned for a reversal offensive. We will quickly stabilize management and rebuild a strong financial position. In addition, over the medium term, we will promote and accelerate business restructuring and improve our risk tolerance and profitability by developing new products and services and creating new businesses. In addition, we will promote ESG strategies as the core of our management strategy and achieve long-term growth in corporate value.

Although there are currently uncertain factors in the external environment, such as high oil prices and a sharp depreciation of the yen, all employees will work together to achieve our earnings targets for this fiscal year and restore the dividend in order to meet the expectations of our shareholders, who continue to support us despite the pandemic.

We look forward to the continued support of our shareholders and investors.

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