JAL plans for profits

6th Feb 2006

The JAL Group has provided its route, frequency and plan for fiscal year 2006, aiming for full year profitability for its international passenger business.The JAL Group will continue restructuring its international, domestic and cargo businesses to build a more profit-focused network.

As outlined in its
Medium-Term Corporate Plan FY2005-2007, JAL plans to build a stable business foundation capable of
producing profits even in the face of factors such as rising fuel costs.

On international passenger routes, JAL will focus its resources on high profit and high growth routes, while
suspending unprofitable routes. An income improvement of 8 billion yen is expected to result from route
suspensions, flight frequency adjustments, and a review of aircraft scheduling contained in the FY2006 plan.
In FY2006, JAL will increase the number of flights between Tokyo and Chicago, Los Angeles, Vancouver and
Taipei. The airline will suspend its Tokyo-Las Vegas route, daily Osaka - Los Angeles route, and two of its routes
linking Seoul to two regional cities in Japan. Flight frequency will be reduced on JAL’s Tokyo - London and
Tokyo - Bangkok routes.
JAL will also continue expanding the international role of its low-overhead subsidiary to secure further
cost-competitiveness. JALways will take over flight operations on the Tokyo - Jakarta route from March 26, 2006,
and from October 1, 2006 flight operations on Tokyo - Ho Chi Minh, Tokyo - Hanoi, Osaka - Hanoi, and Tokyo - Sydney routes.
JAL will expand the operations of domestic subsidiary JAL Express by the transfer of three MD-81 aircraft to that airline.


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