Reviewing the Business Structure for the Post-COVID Era and Developing New Revenue Pillars

「We will accelerate growth in our international route business through the three pillars of full-service carrier, LCC, and CARGO operations, while achieving substantial growth in the mileage and lifestyle businesses through strategic investment and expanded global partnerships. We will also strengthen our earnings base by completing the structural reform of our domestic route business and establish a sustainable domestic route network as social infrastructure.」

「Based on the experience of the COVID-19 pandemic, our group is pursuing business structure reform to rebuild its business portfolio, with a particular focus on creating new businesses in non-air fields and expanding earnings across the group. We established a structure for managing each business by segment and are further advancing business structure reform toward achieving our ¥200 billion EBIT target for the current fiscal year, the final year of our medium-term management plan. In particular, expanding growth and earnings in the LCC Business, Mileage/Finance and Commerce Business, and Other is a key theme.」

「From the current fiscal year, we changed our reportable segments to Full-Service Carrier Business, LCC Business, and Mileage/Finance and Commerce Business, establishing a structure for managing each business by segment and further advancing business structure reform toward achieving our ¥200 billion EBIT target for fiscal 2025.」

「Based on the experience of the COVID-19 pandemic, our group is pursuing business structure reform to rebuild its business portfolio, with a particular focus on creating new businesses in non-air fields and expanding earnings across the group. From the current fiscal year, we changed our reportable segments to Full-Service Carrier Business, LCC Business, and Mileage/Finance and Commerce Business, establishing a structure for managing each segment and further advancing business structure reform toward achieving our ¥200 billion EBIT target for fiscal 2025.」

「In January 2024, JAL Global Club was renewed, and we launched the JAL Life Status program, under which status points continue to accumulate based not only on annual flight activity but also on customers’ lifetime use of JAL flights and various services in their daily lives. We will continue to promote JAL Mile Life, which allows customers to earn miles through various aspects of daily life and exchange them for special experiences unique to JAL.」

「From September, we began selling JAL Insurance, which allows customers to accumulate miles by enrolling. We are also holding business contests to create businesses with new partners.」

「In May, we launched the online shopping mall JAL Mall and worked to make it easier to earn and use miles by offering distinctive products through synergies with JALUX. Going forward, in this business area we will continue to create connections between people and goods, develop them into new sources of revenue, and link those connections to new demand for air travel to increase earnings from our aviation business.」

「In October 2022, we decided to absorb 株式会社ジャルセールス into our company. By shifting to a solution-based sales structure that leverages the assets of the entire group rather than focusing solely on ticket sales, we will strengthen initiatives to help address the issues faced by local communities and customers. In addition, to achieve seamless air-centered mobility, we expanded our partners and improved convenience for the JAL MaaS (Mobility as a Service) service, which supports the search for and arrangement of travel centered on airports.」

「To expand our business areas beyond air transportation, we are pursuing innovation by combining our group’s strengths, its people and customer base, with advanced technology, and working to create new products, services, and businesses that leverage the expertise developed through our air transportation business.」

「In addition to improving the profitability of the full-service carrier business, we will lead business structure reform by expanding our LCC, cargo, and mail businesses and, in our non-air businesses—mileage, lifestyle, and infrastructure—actively expanding into growth areas by leveraging our strengths in our customer base and human skills.」

「We positioned 株式会社ＪＡＬＵＸ (JALUX) as the core company in our non-air businesses and announced on 2 November that we would conduct a tender offer for its shares jointly with Sojitz Corporation, with the aim of making JALUX a consolidated subsidiary by the end of the current fiscal year in order to achieve substantial expansion of its business areas and earnings growth.」

「In the mileage business, we began offering new services, including JAL Home Loans, which use the NEOBANK® service through JAL NEOBANK, an online banking account exclusively for JAL Mileage Bank members. In the lifestyle business, we also began a trial of an air travel subscription service to create new demand for air travel, support new lifestyles, and revitalize local communities by promoting mobility.」

「By improving the profitability of our core full-service carrier business and expanding our LCC and non-air businesses, including the mileage business, which are growth areas, we will reform our business structure and diversify our sources of revenue.」

「From fiscal 2021 onward, in accordance with the JAL Group Medium-Term Management Plan for Fiscal 2021–2025, we positioned business strategy, financial strategy, and ESG strategy as the pillars of our management strategy in order to adapt to changes in the environment and achieve sustainable growth and development.」

「We will undertake a fundamental review of our business structure, including adjusting the scale of our international operations in line with demand trends and reviewing the portfolio of full-service carrier and LCC businesses. We will also develop new businesses with limited dependence on air travel demand into new earnings pillars, and strengthen our resilience to risk by selecting and concentrating our businesses.」

「We will undertake a fundamental review of our business structure, including adjusting the scale of our international operations in line with demand trends and reviewing the portfolio of full-service carrier and LCC businesses. We will also develop new businesses with limited dependence on air travel demand into new earnings pillars, and strengthen our resilience to risk by selecting and concentrating our businesses.」