(Percentage compared to prior year)

[REFERENCE TRANSLATION]

Please note that this translation is to be used solely as reference and the financial statements in this material are unaudited. In case of any discrepancy between this translation and the Japanese original, the latter shall prevail.

Consolidated Financial Results for the Three Months Ended June 30, 2020[IFRS]

Company name

Japan Airlines Co., Ltd

August 3, 2020

Stock Listing

Tokyo Stock Exchange

Code No.

9201

URL: http://www.jal.com

Representative

Yuji Akasaka, President

Contact

Yuichiro Kito, General Manager, Finance

Phone: +81-3-5460-3121

Scheduled date for filing of Quarterly Report:

August 4, 2020

Scheduled date for dividend payment:

Not Applicable

Supplementary explanations of the quarterly financial results: Yes

Presentation for the quarterly financial results:

Yes (for institutional investors and analysts)

(Amounts are rounded down to the nearest million yen unless otherwise indicated)

1. Consolidated Financial Results for the Three Months Ended June 30, 2020(April 1, 2020 to June 30, 2020)

(1) Consolidated Operating Results (Cumulative)

Profit before financing

Profit before tax

Profit attributable to

Comprehensive income

Revenue

and income tax

owners of parent

(Loss in brackets)

(Loss in brackets)

(Loss in brackets)

(Loss in brackets)

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Three months

Yen

(78.1)

Yen

Yen

Yen

Yen

ended June 30, 2020

76,391

(131,010)

(134,333)

(93,707)

(81,159)

Three months

348,808

19,961

20,028

12,958

9,700

ended June 30, 2019

Basic earnings per share

Diluted earnings per share

(Loss in brackets)

Yen

Yen

Three months ended June 30, 2020

(278.06)

Three months ended June 30, 2019

37.23

(Note) Profit before financing and income tax represents as index to monitor, compare and evaluate the JAL Group's performance continuously. Profit before financing and income tax is Profit from which Income tax expense, Interest, and Finance income and expense are deducte d.

(2) Consolidated Financial Position

Ratio of equity

Equity per share

Equity attributable to

attributable to owners

Total Assets

Total Equity

attributable to owners

owners of the parent

of the parent to

of the parent

total assets

(%)

Millions of Yen

Millions of Yen

Millions of Yen

Yen

As of June 30, 2020

2,037,366

968,408

934,488

45.9

2,772.90

As of March 31, 2020

1,982,254

1,049,617

1,014,295

51.2

3,009.71

2. Dividends

Dividends per Share

1st Quarter End

2nd Quarter End

3rd Quarter End

Fiscal Year End

Total

Yen

Yen

Yen

Yen

Yen

Year Ended March 31, 2020

55.00

0.00

55.00

Year Ending March 31, 2021

Year Ending March 31, 2021 (Forecast)

0.00

Note: Revisions to the most recently disclosed dividends forecast: Yes

Note: No interim dividends per share are paid for the fiscal year ending March 2021, considering the spread of COVID-19.

For the forecast of dividends per share for the fiscal year ending March 2021, it remains undetermined at this moment.

3. Consolidated earnings forecast for the fiscal year ending March 31, 2021 Note: Revisions to the most recently disclosed earnings forecast: No

The consolidated financial earnings results forecast for the fiscal year ending March 31, 2021 cannot be provided due to

the difficulty of reasonably & accurately estimating the figures. Please refer to "1. Qualitative Information concerning Financial Results for the First Quarter of FY2020 (3) Explanations of Forecast of Consolidated Financial Results" in the Attachment for the assumptions used and other notes.

The consolidated financial earnings forecast will be disclosed immediately when the business environments becomes foreseeable to a certain extent.

Notes

  1. Changes in significant consolidated subsidiaries during the three months ended June 30, 2020: None
  2. Changes in accounting policies / changes in accounting estimates
  1. Changes in accounting policies due to revisions in accounting standards under IFRS: None
  2. Changes in accounting policies other than 1): None
  3. Changes in accounting estimates: None
  1. Number of shares issued (common stock)
    (a) Total number of shares issued at the end of the period (including treasury shares)

As of June 30, 2020

:

337,143,500

As of March 31, 2020

:

337,143,500

(b) Number of treasury shares at the end of the period

As of June 30, 2020

:

136,157

As of March 31, 2020

:

136,157

(c) Average number of shares outstanding

During the three months ended June 30, 2020

:

337,007,343

During the three months ended June 30, 2019

:

348,025,693

Indication of quarterly review procedure implementation status

This document is unaudited by certificated public accountants or audit firms.

Explanation for appropriate use of forecasts and other notes

Remarks on the description on future forecast

The forward-looking statements such as operational forecasts contained in this statements summary are based on information currently available to the Company and certain assumptions which are regarded as legitimate. However it does not mean that we guarantee its achievement. Actual results may differ from such forward-looking statements for a variety of reasons.

(Adoption of International Financial Reporting Standards (IFRS))

IFRS is applied from the fiscal year ending March 31, 2021, instead of the Japanese standard. Accordingly, the figures in the previous cumulative quarterly consolidated fiscal year and the previous consolidated fiscal year are also calculated in IFRS as well for comparison analysis.

  • The Company holds a presentation for institutional investors and analysts on August 3, 2020. Documents distributed at the presentation are scheduled to be posted on our website on the same day.

Attachment

CONTENTS

1. Qualitative Information concerning Financial Results for the First Quarter of FY2020

2

(1)

Explanation of Operating Results

2

(2)

Explanation on Financial Position

5

(3)

Explanations of Forecast of Consolidated Financial Results

6

(4)

Dividends

6

2. Condensed quarterly consolidated financial statement and primary notes

7

(1)

Condensed quarterly Consolidated Statement of Financial Position

7

(2)

Condensed quarterly Consolidated Statement of profit or loss and Comprehensive Income

9

(3)

Condensed quarterly Consolidated Statement of Changes in Equity

11

(4)

Condensed quarterly Consolidated Statement of Cash flows

13

(5)

Notes for Condensed quarterly Consolidated Financial Statements

14

(Reporting company)

14

(Basis of preparation)

14

(Going Concern Assumption)

14

(Revenue)

15

(Segment Information)

17

(Supplementary information)

18

1

1. Qualitative Information concerning Financial Results for the First Quarter of FY 2020

  1. Explanation of Operating Results
    The revenue decreased by 78.1% year on year to 76.3 billion yen, the operating expense decreased by 37.8% year on year to

205.8 billion yen, the loss before financing and income tax (hereinafter referred as "EBIT") was 131 billion yen (EBIT 19.9 billion yen in the same period in the previous year).The loss attributable to owners of the parent for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020 hereinafter referred as the "First Quarter Period") was 93.7 billion yen (the profit attributable to owners of the parent 12.9 billion yen in the same period in the previous year).

Consolidated financial results are as follows.

(JPY Bn)

Three months ended

Three months ended

% or points compared to

June 30, 2019

June 30, 2020

prior period

Revenue

348.8

76.3

21.9%

International Passenger

130.6

2.7

2.1%

Domestic Passenger

127.1

18.9

14.9%

Cargo / Mail

22.7

26.5

116.9%

Other

68.3

28.1

41.2%

Operating Expense

330.9

205.8

62.2%

Fuel

63.6

19.4

30.5%

Excluding Fuel

267.2

186.3

69.8%

Profit or loss before financing and income

19.9

(131)

tax (EBIT) (Loss in brackets)

EBIT Margin (%)

5.7

(171.5)

(177.2)

Profit or loss attributable to

12.9

(93.7)

owners of the parent (Loss in brackets)

Note: Figures have been truncated and percentages

are rounded off to the first decimal place.

: Profit before financing and income tax is defined as EBIT for the JAL Group. EBIT is calculated as Profit excluding Income tax expense, Interest, and Finance income and expense.

: EBIT Margin=EBIT/ Revenue.

The world and Japanese economy have rapidly declined since January 2020 with the spread of COVID -19 and have stagnated globally in the First Quarter period of FY2020. The airline industry has been unprecedentedly affected to fall into very difficult circumstances. The worldwide spread of COVID-19 infection has imposed severe restriction on international travel globally, causing the international passenger demand to almost disappear. Upon the declaration of the State of Emergency on April 7 in Japan, the domestic passenger demand also fell rapidly and unprecedentedly as inter-prefecture travel was strongly discouraged by the government.

In some countries and areas, the spread of COVID-19 infection has weakened, however, many countries and areas still show no sign of slowing down of the spread, which makes the recovery of international passenger demand unforeseeable. On the other hand, after inter-prefecture domestic travel was allowed in Japan from June 19, the domestic passenger demand has been gradually recovering. The Japanese society is still struggling to find how to resume economic activities with infection prevention measures, thus it is expected to take more time for the domestic passenger demand to make a full recovery.

Amid this business environment, securing safety for our passengers and employees as the first priority, the JAL group has been seeking to fulfill its responsibilities as public transportation operator by sustaining domestic air transport network for passengers who needs to travel. Also, it operated chartered rescue flights between Thailand, India, Russia, the United States, China and Japan for those who wanted to return to their homelands. To ensure safety and security, the JAL group has implemented hygiene measures such as asking for cooperation from passengers to take temperature check before boarding and to keep social distances, regular and frequent disinfecting of airport facilities and aircrafts, and wearing face masks and face guards to prevent infection.

To this rapidly-decreasing demand, we are making continuous efforts of reducing our capacity to minimize our operating cost, together with fixed cost restructuring by in-sourcing operations instead of outsourcing, reducing IT expenditure and reducing personnel cost including bonus cut. The cost reduction targets that we have disclosed earlier are most likely to be achieved, hence, we will make a further cost reduction to cover the effect on our performance of slow demand recovery. For cargo operation, most of airlines reduced their cargo capacity by cancellation of flights and the demand-supply situation became tightened. In such circumstances, the JAL Group has been striving to support logistics domestically and globally by operating passenger aircraft for cargo flights to carry medical supplies such as medical masks or protective clothing. As the passenger and

2

flight number decreases, the workload of employees that are closely related to flight operation also decreases. The JAL Group uses this occasion for further growth, once COVID-19 infection ends, by reviewing operation manuals or enhancing training to improve each employee's ability.

In the current unprecedented situation, the Japanese government assists the airline industry with public support including deferral or exemption of landing fees and jet fuel tax. We would like to show our sincere gratitude for the support.

We will ensure flight safety and prevention of further spread of COVID-19. With those supports, we will pursue further cost reduction and then survive this hardship and prepare for recovery.

The JAL group will continue to reduce operating costs and to increase its revenue as much as possible with keeping a close eye on the passenger travel demand, considering the spread of COVID-19 in Japan and the world, and the outlook of the world and Japanese economy.

As a result of the above, the available seat kilometers (ASK) for International Passenger Business in the first quarter decreased by 91.7% year over year, its passenger traffic decreased by 98.6% year over year, its revenue passenger kilometers (RPK) decreased by 98.3% year over year, and the load factor decreased to 17.5%. Likewise, the available seat kilometers (ASK) for Domestic Passenger Business decreased by 64.2% year over year, its passenger traffic decreased by 86.7% year over year, its revenue passenger kilometers (RPK) decreased by 86.9% year over year, and the load factor decreased to 28.3%.

Financial results for each segment are as follows.

Air Transportation Segment

In the first quarter period, Revenue in Air Transportation Segment decreased by 77.9% year on year to 70.2 billion yen and the loss before investing, financing and income tax hereinafter referred as "Segment profit (or loss)" was 130.7 billion yen (segment profit 16.8 billion yen in the same period in the previous year).

(Revenue and Segment profit (or loss) are before elimination of transactions between segments.) The international passenger revenue was 2.7 billion yen, or down 97.9 % year over year. The domestic passenger revenue was 18.9 billion yen, or down 85.1 % year over year.

The cargo and mail revenue was 26.5 billion yen, or up16.9 % year over year.

3

Consolidated Traffic Results

Three months ended

Three months ended

% or points compared to

June 30, 2019

June 30, 2020

prior period

INTERNATIONAL

Revenue passengers carried

2,429,153

33,875

1.4%

(number of passengers)

Revenue passenger km

12,016,489

198,894

1.7%

(1,000 passenger-km)

Available seat km (thousands)

13,767,453

1,138,551

8.3%

Revenue passenger-load factor (%)

87.3

17.5

(69.8)

Revenue cargo ton-km (thousands)

589,970

350,745

59.5%

Mail ton-km (thousands)

40,033

30,823

77.0%

DOMESTIC

Revenue passengers carried

9,272,838

1,231,323

13.3%

(number of passengers)

Revenue passenger-km

6,973,321

911,954

13.1%

(1,000 passenger-km)

Available seat km (thousands)

9,022,198

3,227,571

35.8%

Revenue passenger-load factor (%)

77.3

28.3

(49.0)

Revenue cargo ton-km (thousands)

80,716

54,026

66.9%

Mail ton-km (thousands)

6,300

4,612

73.2%

TOTAL

Revenue passengers carried

11,701,991

1,265,198

10.8%

(number of passengers)

Revenue passenger-km

18,989,811

1,110,849

5.8%

(1,000 passenger-km)

Available seat km (thousands)

22,789,651

4,366,123

19.2%

Revenue passenger-load factor (%)

83.3

25.4

(57.9)

Revenue cargo ton-km (thousands)

670,687

404,772

60.4%

Mail ton km (thousands)

46,333

35,436

76.5%

1 Revenue Passenger Kilometers (RPK) is the number of fare-paying passengers multiplied by the distance flown (km). Available Seat Kilometers (ASK) is the number of available seats multiplied by the distance flown (km).

Revenue Cargo Ton Kilometers (RCTK) is the amount of cargo (ton) transported multiplied by the distance flown (km).

  1. The distance flown between two points, used for calculations of RPK, ASK and RCTK above is based on the great-circle distance and according to statistical data from IATA (International Air Transport Association) and ICAO (International Civil Aviation Organization).
  2. International operations: Japan Airlines Co., Ltd.,

Domestic operations: Japan Airlines Co., Ltd., Japan Transocean Air Co., Ltd., Japan Air Commuter Co., Ltd., J-Air Co., Ltd., Ryukyu Air Commuter Co., Ltd., and Hokkaido Air System Co., Ltd.,

  1. Figures have been truncated and percentages are rounded off to the first decimal place.
  2. From FY2020, upon the application of IFRS, passengers flying with mileage award tickets are included as fare-paying passengers, and those passengers are included in Revenue passenger carried, Revenue passenger km and Revenue passenger-load factor. These changes are reflected in the corresponding figures in FY2019.
  3. For International Revenue passenger carried and International Revenue passenger km, Japan Airline's sales with codeshare flights operated by oneworld alliance member carriers except joint venture partners is excluded from FY2020. This change is also reflected in the corresponding figures in FY2019.

4

  1. Explanation of Financial Position (Assets, liabilities and net asset)
    The assets in first quarter period increased by 55.1 billion yen from the end of the previous consolidated fiscal year to 2 trillion

and 37.3billion yen. Out of the current assets, Cash and Cash equivalents increased by 65.1 billion yen due to swift capital-raising to the total of 394.3 billion yen. Trade and other receivables decreased by 19.5 billion yen due to the decrease of International Passenger Revenue. Then, Current assets increased by 41.8 billion yen from the end of the previous consolidated fiscal year to

  1. billion yen. Non-current assets increased by 13.2 billion yen through the increase of Deferred tax assets to 1 trillion and
  1. billion yen.
    The liabilities increased by 136.3 billion yen from the end of the previous consolidated fiscal year to 1 trillion and 68.9 billion yen due to the capital raising of approximately 230 billion yen to ensure enough liquidity at hand.
    The equity decreased by 81.2 billion yen from the end of the previous consolidated fiscal year to 968 .4 billion yen, as a result of loss attributable to owner of the parent of 93.7 billion yen.

The JAL Group has taken steps to raise capital backed by its strong financial position, and has borrowed, as of date, an additional approximately 300 billion yen from financial institutions since February 2020 when the spread of COVID-19 became apparent, in several countries. We have also secured a 200 billion yen credit line that remains unused as of today. As result, we have flexibly raised capital totaling approximately 500 billion yen since February 2020 and will have necessary liquidity at hand for the time being.

We will continue to make every effort to secure liquidity at hand and promptly implement financial policies that contribute to the stabilization of management.

(Outline of Cash Flows)

Cash and cash equivalents at end of first quarter period increased by 65.1 billion yen from the end of the previous consolidated fiscal year to 394.3 billion yen.

  • Cash Flows from Operating Activities

As a total of quarterly loss before tax of 134.3 billion yen, non-cash expenses like depreciation, retirement benefit liability, and Trade and other payables and receivables, cash flow from operating activities (outflow) was 130.2 billion yen (cash inflow of 56.6 billion yen in the same period of the previous year).

  • Cash Flows from Investing Activities

Cash flow from investing activities (outflow) was 25.1 billion yen mainly due to acquisition of Fixed assets (cash outflow of 49.4 billion yen in the same period of the previous year).

  • Cash Flows from Financing Activities

Cash flow from financing activities (inflow) was 220.4 billion yen mainly due to long term debts (cash outflow of 37.1 billion yen in the same period of the previous year).

5

(3) Explanations of Forecast of Consolidated Financial Results

At present, it is difficult to disclose a forecast of consolidated earnings for the fiscal year ending March 2021, because these figures may significantly fluctuate depending on circumstances when the negative impacts of COVID -19 are settled and international and domestic passenger demand recover.

However, we would like to show the following simulation to present what extent International Passenger Revenue and Domestic Passenger Revenue would change in certain scenarios of different passenger demand recovery trends as a year-on- year analysis. We applied certain assumptions in calculating the values, using the percentage figures of FY2019 financial results ().

The demand recover trend is not clear enough for us to express our estimate yet, but based on the above assumptions, the total revenue of both International Passenger and Domestic Passenger might decline to an around 35%45% level year on year in FY2020 (). Taking into account the other revenue and further cost reduction including fixed costs, profit, as EBIT basis, might also decline by approximately 50% of the revenue decline.

Note: Even if the assumptions do not change, passenger revenues may not end at figures indicated in the above table.

: FY2019 Results is the revised forecast that was disclosed at FY2019Q3 Financial Results disclosed on Jan. 31, 2020

The consolidated financial earnings forecast will be disclosed immediately when the business environments becomes foreseeable to a certain extent.

(4) Dividends

Due to the spread of COVID-19 since February 2020, the airline industry including the JAL Group has been severely affected. As a result, EBIT decreased to loss of 131 billion yen. Yet, it is unclear when the COVID-19 spread would abate and diminish.

Considering the above, we determined to pursue liquidity at hand as our first priority. Therefore, we regret that we have determined not to pay interim dividends. We sincerely apologize to our shareholders and investors and would like to ask for their understanding amid the very difficult situation that we are currently in.

For the forecast of the year-end dividends per share and the total dividends per share for the fiscal year ending March 2021, it will be undetermined because the impact of the new coronavirus on JAL's performance is not foreseeable at this moment.

6

2. Condensed quarterly consolidated financial statement and primary notes

(1) Condensed quarterly consolidated statement of financial position

The date of

As of March 31,

As of June 30,

transition to IFRS

2020

2020

(April 1.2019)

Millions of yen

Millions of yen

Millions of yen

Assets

Current assets

Cash and cash equivalents

522,064

329,149

394,315

Trade and other receivables

144,053

94,071

74,559

Other financial assets

5,067

1,305

1,720

Inventories

23,682

28,409

27,889

Other current assets

46,442

55,500

51,773

Total current assets

741,309

508,435

550,258

Non-current assets

Tangible fixed assets

Flight equipment

795,439

894,835

880,893

Advances on flight equipment

138,569

102,519

95,392

Other tangible fixed assets

77,495

86,462

84,752

Total tangible fixed assets

1,011,504

1,083,817

1,061,038

Intangible assets

92,255

95,777

94,582

Investments accounted for using equity method

31,697

31,105

27,151

Other financial assets

119,515

120,218

126,810

Deferred tax assets

143,422

122,323

157,362

Retirement benefit asset

1,178

938

984

Other non-current assets

12,765

19,638

19,178

Total non-current assets

1,412,338

1,473,819

1,487,107

Total assets

2,153,648

1,982,254

2,037,366

7

The date of

As of March 31,

As of June 30,

transition to IFRS

2020

2020

(April 1.2019)

Millions of yen

Millions of yen

Millions of yen

Liabilities and equity

Liabilities

Current liabilities

Trade and other payables

137,684

125,208

73,644

Interest-bearing liabilities

38,408

38,618

50,742

Other financial liabilities

39,108

51,065

30,218

Income taxes payable

19,192

2,824

3,083

Contract liabilities

294,663

251,809

228,167

Provisions

-

1,220

299

Other current liabilities

49,916

30,903

40,253

Total current liabilities

578,972

501,651

426,409

Non-current liabilities

Interest-bearing liabilities

185,920

238,811

453,932

Other financial liabilities

8,771

13,913

11,863

Deferred tax liabilities

163

222

114

Provisions

14,594

14,645

14,666

Retirement benefit liability

256,305

151,330

149,391

Other non-current liabilities

13,243

12,062

12,579

Total non-current liabilities

478,999

430,985

642,547

Total liabilities

1,057,972

932,637

1,068,957

Equity

Share capital

181,352

181,352

181,352

Capital surplus

182,437

182,437

182,437

Retained earnings

666,030

645,408

551,426

Treasury shares

(408)

(408)

(408)

Accumulated other comprehensive income

Financial assets measured at fair value through

31,097

28,793

32,092

other comprehensive income

Effective portion of cash flow hedges

1,837

(23,146)

(12,324)

Exchange differences on translation of foreign

-

(141)

(88)

operations

Total accumulated other comprehensive income

32,934

5,506

19,680

Total equity attributable to owners of parent

1,062,345

1,014,295

934,488

Non-controlling interests

33,330

35,321

33,920

Total equity

1,095,675

1,049,617

968,408

Total liabilities and equity

2,153,648

1,982,254

2,037,366

8

(2) Condensed quarterly consolidated statement of profit or loss and other comprehensive income

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Millions of yen

Millions of yen

Revenue

International passenger revenue

130,610

2,711

Domestic passenger revenue

127,103

18,950

Other revenue

91,094

54,729

Total revenue

348,808

76,391

Other income

1,489

1,255

Operating expenses

Personnel expenses

(76,085)

(64,792)

Aircraft fuel

(63,677)

(19,436)

Depreciation, amortization and impairment losses

(40,297)

(44,600)

Other operating expenses

(150,841)

(76,997)

Total operating expenses

(330,900)

(205,827)

Operating profit (Loss in brackets)

19,396

(128,179)

Share of profit of investments accounted for using

383

(3,857)

equity method

Profit before investing, financing and income tax

19,780

(132,037)

(Loss in brackets)

Income/expenses from investments

Investing income

1,243

1,074

Investing expenses

(1,062)

(46)

Profit before financing and income tax (Loss in brackets)

19,961

(131,010)

Finance income/expenses

Finance income

526

549

Finance expenses

(459)

(3,872)

Profit before tax (Loss in brackets)

20,028

(134,333)

Income tax expense

(6,148)

39,204

Profit (Loss in brackets)

13,879

(95,128)

Profit attributable to

owners of parent

12,958

(93,707)

Non-controlling interests

920

(1,421)

Other comprehensive income

Items that will not be reclassified to profit or loss

Net change in fair value of equity instruments

designated as measured at fair value through other

177

3,059

comprehensive income

Share of other comprehensive income of

(52)

(2)

investments accounted for using equity method

Total of items that will not be reclassified to profit

125

3,056

or loss

Items that may be reclassified to profit or loss

Effective portion of cash flow hedges

(3,851)

10,321

Exchange differences on translation of foreign

(139)

(44)

operations

Share of other comprehensive income of

(313)

635

investments accounted for using equity method

Total of items that may be reclassified to profit or

(4,304)

10,912

loss

Other comprehensive income

(4,178)

13,969

Comprehensive income

9,700

(81,159)

9

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Millions of yen

Millions of yen

Comprehensive income attributable to

Owners of parent

8,782

(79,758)

Non-controlling interests

918

(1,401)

Earnings per share

Basic earnings per share

37.23

(278.06)

Diluted earnings per share

10

(3) Condensed quarterly consolidated statement of changes in equity

Consolidated financial results for the first quarter of FY2019 (April 1, 2019 to June 30, 2019)

Equity attributable to owners of parent

Accumulated other

comprehensive income

Financial

Retained

assets

Effective

Share capital

Capital surplus

Treasury shares

measured at

earnings

portion of

fair value

cash flow

through other

hedges

comprehensiv

e income

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Balance as of April 1, 2019

181,352

182,437

666,030

(408)

31,097

1,837

Profit

12,958

Other comprehensive income

117

(4,134)

Comprehensive income

12,958

117

(4,134)

Dividends

(19,189)

Transfer to non-financial assets

(78)

Purchase of treasury shares

(7,676)

Transfer to retained earnings

(617)

617

Total transactions with owners

(19,806)

(7,676)

617

(78)

Balance as of June 30, 2019

181,352

182,437

659,181

(8,084)

31,832

(2,375)

Equity attributable to owners of parent

Accumulated other

comprehensive income

Total Equity

Non-controlling

Exchange

Total

Total equity

attributable to

interests

differences on

accumulated

owners of

translation of

other

parent

foreign

comprehensive

operations

income

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Balance as of April 1, 2019

32,934

1,062,345

33,330

1,095,675

Profit

12,958

920

13,879

Other comprehensive income

(158)

(4,176)

(4,176)

(2)

(4,178)

Comprehensive income

(158)

(4,176)

8,782

918

9,700

Dividends

(19,189)

(2,376)

(21,566)

Transfer to non-financial assets

(78)

(78)

(78)

Purchase of treasury shares

(7,676)

(7,676)

Transfer to retained earnings

617

Total transactions with owners

539

(26,944)

(2,376)

(29,320)

Balance as of June 30, 2019

(158)

29,297

1,044,184

31,871

1,076,055

11

Consolidated financial results for the first quarter of FY2020 (April 1, 2020 to June 30, 2020)

Equity attributable to owners of parent

Accumulated other

comprehensive income

Financial

Retained

assets

Effective

Share capital

Capital surplus

Treasury shares

measured at

earnings

portion of

fair value

cash flow

through other

hedges

comprehensiv

e income

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Balance as of April 1, 2020

181,352

182,437

645,408

(408)

28,793

(23,146)

Profit

(93,707)

Other comprehensive income

3,025

10,870

Comprehensive income

(93,707)

3,025

10,870

Dividends

Transfer to non-financial assets

(48)

Purchase of treasury shares

Transfer to retained earnings

(273)

273

Total transactions with owners

(273)

273

(48)

Balance as of June 30, 2020

181,352

182,437

551,426

(408)

32,092

(12,324)

Equity attributable to owners of parent

Accumulated other

comprehensive income

Total Equity

Non-controlling

Exchange

Total

Total equity

attributable to

interests

differences on

accumulated

owners of

translation of

other

parent

foreign

comprehensive

operations

income

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Balance as of April 1, 2020

(141)

5,506

1,014,295

35,321

1,049,617

Profit

(93,707)

(1,421)

(95,128)

Other comprehensive income

52

13,949

13,949

20

13,969

Comprehensive income

52

13,949

(79,758)

(1,401)

(81,159)

Dividends

Transfer to non-financial assets

(48)

(48)

(48)

Purchase of treasury shares

Transfer to retained earnings

273

Total transactions with owners

225

(48)

(48)

Balance as of June 30, 2020

88

19,680

934,488

33,920

968,408

12

  1. Condensed quarterly consolidated statement of cash flows

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Millions of yen

Millions of yen

Cash flows from operating activities

Profit before tax

20,028

(134,333)

Depreciation, amortization and impairment losses

40,297

44,600

Loss (gain) on sale and retirement of fixed assets

781

257

Increase (decrease) in retirement benefit liability

(1,670)

(1,937)

Interest and dividend income

(1,357)

(1,096)

Interest expenses

341

477

Foreign exchange loss (gain)

(297)

(199)

Share of loss (profit) of investments accounted for

(383)

3,857

using equity method

Decrease (increase) in trade and other receivables

(207)

19,841

Decrease (increase) in inventories

(1,410)

(767)

Increase (decrease) in trade and other payables

(16,614)

(44,435)

Increase (decrease) in contract liabilities

21,351

(23,641)

Other, net

18,237

8,831

Subtotal

79,094

(128,545)

Income taxes paid

(22,445)

(1,666)

Net cash provided by (used in) operating activities

56,648

(130,211)

Cash flows from investing activities

Purchase of non-current assets

(53,843)

(25,789)

Proceeds from sales of non-current assets

925

224

Purchase of other financial assets

(170)

(3,137)

Proceeds from sale of other financial assets

325

468

Payments for loans receivable

(73)

(58)

Collection of loans receivable

108

167

Interest received

163

71

Dividends received

1,570

1,343

Other, net

1,502

1,587

Net cash provided by (used in) investing activities

(49,491)

(25,122)

Cash flows from financing activities

Net increase (decrease) in short-term borrowings

(0)

(37)

Proceeds from long-term borrowings

230,323

Repayments of long-term borrowings

(40)

Purchase of treasury shares

(10,005)

Interest paid

(110)

(89)

Dividends paid

(18,713)

(12)

Dividends paid to non-controlling interests

(2,175)

Repayments of lease liabilities

(6,221)

(6,377)

Other, net

106

(3,311)

Net cash provided by (used in) financing activities

(37,121)

220,455

Effect of exchange rate changes on cash and cash

(398)

45

equivalents

Net increase (decrease) in cash and cash equivalents

(30,361)

65,166

Cash and cash equivalents at beginning of period

522,064

329,149

Cash and cash equivalents at end of period

491,702

394,315

13

  1. Notes for Condensed quarterly consolidated financial statements

(Reporting company)

Japan Airlines Co., Ltd. (hereinafter the "Company") is a stock company located in Japan. The registered address of its Head Office is 4-11,2-chomeHigashi-shinagawa,Shinagawa-ku, Tokyo. The Company's condensed quarterly consolidated financial statements for the three months ended June 30, 2020 consists of the Company and its subsidiaries (the "JAL Group") and interests in affiliates and jointly controlled entities.

The Company's main business is the air transportation business. Details of each business are described in Note "5. Segment Information."

(Basis of preparation)

1) Matters concerning compliance with IFRS and first-time adoption

As the condensed quarterly consolidated financial statements of the JAL Group fulfills requirements of Specified Companies Complying with Designated International Accounting Standards set forth in Article 1-2 of Regulation on the Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements, it was prepared in compliance with IAS No. 34 Interim Financial Reporting in accordance with Article 93 of the Regulations.

This condensed quarterly consolidated financial statements were approved by the Board of Directors on August 3, 2020. The JAL Group adopted International Financial Reporting Standards (hereinafter "IFRS") from this consolidated fiscal

year (April 1, 2020 to March 31, 2021). The consolidated financial statements for this consolidated fiscal year will be the first consolidated financial statements prepared in accordance with IFRS. The date of transition to IFRS is April 1, 2019.

On shifting to IFRS, the JAL Group applied IFRS No. 1 "First-time Adoption of International Financial Reporting Standards" (hereinafter "IFRS No. 1").

JAL Group's accounting policy complies with IFRS effective as of June 30, 2020, excluding IFRS not adopted earlier and exemption rules recognized in IFRS No. 1.

2) Functional currency and presentation currency

The JAL Group's condensed quarterly consolidated financial statements are expressed in Japanese yen, our functional currency, as the presentation currency, and are rounded off to the nearest million yen.

(Going Concern Assumptions)

None

14

(Revenue)

(1 Breakdown of revenue Revenue and Segment Revenue

Consolidated financial results for the first quarter of FY2019 (April 1, 2019 to June 30, 2019)

Segment

Air

Internal

Other

Sub-total

transaction

Total

Transportation

adjustment

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

International

Passenger operations

130,610

130,610

Cargo and mail-service

16,773

16,773

operation

Luggage operations

213

213

Sub-total

147,597

147,597

Domestic

Passenger operations

127,103

127,103

Cargo and mail-service

5,956

5,956

operation

Luggage operations

75

75

Sub-total

133,135

133,135

Total revenues from international

280,732

280,732

and domestic operations

Other revenues

Travel agency Revenue

44,863

44,863

Other

37,737

15,348

53,086

Total revenues

318,469

60,211

378,681

(29,873)

348,808

(Note) Figures of Segment revenue are before elimination of intra-segment transactions.

Consolidated financial results for the first quarter of FY2020 (April 1, 2020 to June 30, 2020)

Segment

Air

Internal

Other

Sub-total

transaction

Total

Transportation

adjustment

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

International

Passenger operations

2,711

2,711

Cargo and mail-service

20,564

20,564

operation

Luggage operations

29

29

Sub-total

23,305

23,305

Domestic

Passenger operations

18,950

18,950

Cargo and mail-service

6,016

6,016

operation

Luggage operations

31

31

Sub-total

24,999

24,999

Total revenues from international

48,304

48,304

and domestic operations

Other revenues

Travel agency revenue

2,554

2,544

Other

21,972

11,871

33,844

Total revenues

70,277

14,415

84,693

(8,301)

76,391

(Note) Figures of Segment revenue are before elimination of intra-segment transactions.

15

The JAL Group operates "Air Transportation", mainly in passenger and baggage carriage or mail and cargo handling in both international and domestic routes, and "Other" business.

Revenues arising out of these businesses are recognized in accordance with contracts with customers, and there is no significant financing component in the contracts.. None of consideration in contracts with customers is not reflected in transaction prices. The JAL Group operates a customer loyalty program called "JAL Mileage Bank". Members in the JAL Mileage Bank can collect miles through flights with the airlines in JAL Group or other services, and can redeem them for flights with JAL group or other partners' services. Miles that are expected to be redeemed are identified as performance obligations, and deferred on the statement of financial position as a contract liability. When miles are redeemed for services, revenue is recognized in the statement of profit or loss and other comprehensive income. A transaction price allocated as performance obligations of miles is determined on the basis of a ratio of the stand-alone selling price of each service. .

Air Transportation

In the air transportation business segment, the JAL Group provides services related to the international and domestic transportation of passengers, cargo & mail and baggage on aircraft. The main revenues are recognized as follows.

Passenger operations

Passenger revenue is mainly revenue earned from passenger transportation services using aircraft. The JAL Group has the obligation to provide customers with international and domestic air transportation services according to the Conditions of Carriage. The performance obligation is satisfied upon completion of the passenger's air transportation service. The transaction price may fluctuate because we may offer discounts when selling tickets or pay incentives based on the amount of sales. In addition, consideration for a transaction is generally received in advance at a point in time before the performance obligation is satisfied.

Cargo and mail-service operations

Cargo and mail revenues are mainly revenues earned from air cargo and air mail handling operations. The JAL Group has the obligation to provide international and domestic cargo and mail transportation services. The performance obligation is satisfied upon completion of cargo and mail air transportation. The amount of variable consideration including revenue is not significant.. Consideration for a transaction is generally received after the completion of cargo and mail air transportation.

Luggage operations

Baggage revenue is mainly revenue earned from baggage transportation services that accompany passenger transportation on aircraft. The JAL Group has the obligation to provide customers with international and domestic air transportation services. The performance obligation is satisfied upon completion of baggage air transportation. Sales including variable consideration is the amount of variable consideration including revenue is not significant. Consideration for a transaction is generally received on the day of baggage transportation.

Other

In "Other" businesses, we are mainly engaged in planning and sales of air travel package tour and a credit card

business.

16

(Segment Information)

(1) Overview of segment reporting

The reportable segments of the JAL Group are components of the Company about which separate financial information is available and evaluated regularly by the Board of Directors in deciding how to allocate resources and evaluating business performance.

The main business operations of the JAL Group are scheduled and nonscheduled international and domestic air transportation services. Therefore, the JAL Group recognizes the "air transportation business" as the reportable segment.

(2) Information on reportable segment

Revenue and business performance by JAL Group's reportable segment are as follows.

Intersegment sales is based on the current market price.

Consolidated financial results for the first quarter of FY2019 (April 1, 2019 to June 30, 2019)

Reportable

segment

Others

Total

Adjustment

Consolidated

Air

(Note)1

(Note) 2

Statement

Transportation

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Revenue

Sales to external

294,803

54,004

348,808

348,808

Intersegment

23,666

6,207

29,873

(29,873)

Total

318,469

60,211

378,681

(29,873)

348,808

Profit or loss before investing,

16,884

2,915

19,800

(19)

19,780

financing and income tax

Investing income

1,243

Investing expenses

1,062

Finance income

526

Finance expenses

459

Profit before tax

20,028

(Note) 1. "Others" refer to business segments that are not included in the reportable segment, such as travel services, etc.

  1. Adjustment includes intersegment elimination.
  2. Segment profit has been adjusted with profit before investing, financing and income tax on the condensed quarterly consolidated statement of profit or loss and other comprehensive income.

Consolidated financial results for the first quarter of FY2020 (April 1, 2020 to June 30, 2020)

Reportable

segment

Others

Total

Adjustment

Consolidated

Air

(Note)1

(Note) 2

Statement

Transportation

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Revenue

Sales to external

67,535

8,856

76,391

76,391

Intersegment

2,742

5,559

8,301

(8,301)

Total

70,277

14,415

84,693

(8,301)

76,391

Profit or loss before investing,

(130,768)

(1,275)

(132,043)

6

(132,037)

financing and income tax

Investing income

1,074

Investing expenses

46

Finance income

549

Finance expenses

3,872

Profit before tax

(134,333)

(Note) 1. "Others" refer to business segments that are not included in the reportable segment, such as travel services, etc.

  1. Adjustment includes intersegment elimination.
  2. Segment profit has been adjusted with profit before investing, financing and income tax on the condensed quarterly consolidated statement of profit or loss and other comprehensive income.

17

(Percentage compared to prior year)

(Supplementary Information)

Consolidated Financial Results for the year Ended March 31, 2020[IFRS]

Company name

Japan Airlines Co., Ltd

August 3, 2020

Stock Listing

Tokyo Stock Exchange

Code No.

9201

URL: http://www.jal.com

Representative

Yuji Akasaka, President

Contact

Yuichiro Kito, General Manager, Finance

Phone: +81-3-5460-3121

(Amounts are rounded down to the nearest million yen unless otherwise indicated)

1. Consolidated Financial Results for the year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)

(1) Consolidated Operating Results

Revenue

Profit before financing

Profit before tax

Profit attributable to

Comprehensive income

and income tax

owners of parent

Millions of Yen

%

Millions of Yen

%

Millions of Yen

%

Millions of Yen

Millions of Yen

%

Year Ended

1,385,914

88,807

88,149

48,057

34,298

March 31, 2020

Basic earnings per share

Diluted earnings per share

Yen

Yen

Year Ended March 31, 2020

140.04

(Note) Profit before financing and income tax represents as index to monitor, compare and evaluate the JAL Group's performance continuously. Profit before financing and income tax is Profit from which Income tax expense, Interest, and Finance income and expense are deducted.

(2) Consolidated Financial Position

Ratio of equity

Equity per share

Equity attributable to

attributable to owners

Total Assets

Total Equity

attributable to owners

owners of the parent

of the parent to

of the parent

total assets (%)

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

As of March 31, 2020

1,982,254

1,049,617

1,014,295

51.2

3,009.71

(3) Consolidated Cash Flows

Cash flows from operating

Cash flows from investing

Cash flows from financing

Year end balance of cash and

activities

activities

activities

cash equivalents

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Year Ended March 31, 2020

80,857

(233,725)

(38,810)

329,149

18

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Japan Airlines Co. Ltd. published this content on 03 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2020 06:02:04 UTC