The JAL Group today announced consolidated results for the first three quarters (April - December inclusive) of fiscal year 2009.
Japan Airlines Corporation, Japan Airlines International Co., Ltd. and JAL Capital Co., Ltd. (collectively, “JAL”), filed on January 19, 2010, an application to the Enterprise Turnaround Initiative Corporation of Japan (ETIC) for support for its restructuring and also filed for petitions with the Tokyo District Court (the Court) for commencement of corporate reorganization proceedings. JAL received the decision from ETIC that it will provide support and on the same day, the Court entered an order commencing the proceedings.
JAL recognizes and is deeply apologetic for the current situation that has caused great inconvenience and concern to our shareholders, financial creditors, customers, suppliers and other related parties. Now, JAL is working fervently with the ETIC under the supervision of the court and court-appointed trustees (Trustees) to draw up an effective corporate revitalization plan to rebuild the airline, while continuing to provide safe and stable flight operations and services to customers. The JAL Group will stand united in our efforts to strive towards achieving a successful reform.
The consolidated operating revenue for this reporting period decreased by 414.4 billion yen compared to that of last year. On the other hand, operating expense was substantially reduced in almost every cost category, achieving a 302.5 billion yen decrease from the same period last year to 1,265.6 billion yen. Operating loss widened by 111.9 billion yen to 120.8 billion yen while ordinary loss increased by 127.7 billion yen to 153.3 billion. The resulting net loss for this reporting period is 177.9 billion yen, 176 billion yen more than previous year.
The consolidated financial statements for this reporting term were prepared on the going concern assumption, where the effects of substantial uncertainties related to the going concern assumption are not reflected in this report. Abiding by Section 83, Part 1 and 4 of the Japanese Corporate Rehabilitation Law, the Group’s assets are now being evaluated by the Trustees based on current market values. Japan Airlines Corporation, Japan Airlines International Co., Ltd. and JAL Capital Co., Ltd. are now operating under the Corporate Reorganization Proceedings and thus, their accounting term, as well as that used by the JAL Group for its consolidated financial report formally ended on January 19, 2010*.
*The fiscal period (April 1 to March 31) of other individual Group companies remain unchanged.