The JAL Group today announced consolidated results for the third quarter of the financial year ending March 31 2004 (FY 2003), recording a net profit of 3.7 billion yen. International passenger traffic between October and December showed recovery in both business and leisure travel after the worst of the impact of the Iraq war and SARS outbreak but ended up 6.5% lower in volume than the same period last year. The total of revenue passenger kilometers performed, a measure of demand, was slightly down (3.2%) and revenues fell by 6.6% to 154.6 billion yen compared to the same period last year.

Domestic passenger traffic performed well, reflecting the improved domestic network and schedule achieved by the JAL/JAS integration. In the October-December period demand in terms of revenue passenger kilometers was almost exactly the same as in the same period last year but yield improved as revenues increased by 10.8% to a total of 168.4 billion yen.

International cargo traffic showed an improvement on Asian routes from October and overall during the period performance was about the same as the same period the year before. Exchange rates had a negative impact on revenues and total international cargo revenues were 4.6% down at 43.3 billion yen.

During the same period last year the average price per barrel of Singapore kerosene was US$31.7, lower than the average price of US$33.5 in the October-December period this year. However the favorable exchange rate and lower fuel consumption reduced the fuel bill by 2.8 billion yen to 62.3 billion yen during the 3rd quarter, compared to last year.

Non-operating profits included 13.5 billion yen in credit memos linked to aircraft purchase.

Generally favorable exchange rates, notably the Yen/US$ rate, had a positive effect on operating income of 4.7 billion yen. (Third quarter 2002 average Yen/US$ rate 123.3 yen. Third quarter 2003, average Yen/US$ rate 111.3 yen.)

Counter measures to cut costs aided by aggressive sales promotion activities to boost sales revenues, helped produce a consolidated net profit for the October-December period of 3.7 billion yen.

There is no change to the forecast for the full year ending March 31 2004 announced at the mid-term on November 14. However, the JAL Group said it feels there could be some influence from higher fuel prices and has some concern about the possible psychological impact on international passenger demand as a result of Avian influenza or further SARS outbreaks.
——-