Impact of Crude Oil Price and Exchange-Rate Fluctuations on Earnings

「On the cost side, fuel costs increased by ¥15.4 billion due to higher consumption and other factors, while personnel expenses increased by ¥35.0 billion due to increased investment in human capital and other factors.」

「On the cost side, fuel costs increased by ¥23.2 billion due to higher consumption resulting from the resumption of flights and other factors, while personnel expenses increased by ¥29.3 billion due to increased investment in human capital and other factors.」

「Aviation fuel costs (¥100 million) 1,700 1,923 113.1%」

「On the cost side, the exchange rate was more favorable than assumed, with the yen stronger than expected, and fuel prices also remained below assumptions. As a result, costs, particularly fuel costs, declined.」

「Meanwhile, the environment surrounding society as a whole is becoming more challenging due to the yen's depreciation, higher fuel prices, inflation, labor shortages, disruptions in the supply chain for aircraft parts and other items, and an unstable global situation. The Group will address higher fuel prices and inflation by improving unit prices through stronger revenue management and by further reducing costs.」

「Aviation fuel costs (¥100 million) 698 794 113.7%」

「Aviation fuel costs (¥100 million) 1,018 2,416 237.3%」

「Aviation fuel costs (¥100 million) 589 1,548 262.5%」

「Aviation fuel costs (¥100 million) 265 698 262.6%」

「Crude oil prices affect fuel costs, passenger revenue and cargo revenue. They have surged due to geopolitical risks related to the situation involving Russia and Ukraine and the resulting economic sanctions imposed by Western countries, leaving the market outlook uncertain.」

「Crude oil prices fell sharply as the impact of the spread of COVID-19 on the global economy intensified, but shifted to an upward trend on expectations that economic activity would normalize as vaccines became more widely available.」

「Crude oil prices have fallen sharply since March 2020 due to the failure of negotiations on coordinated production cuts by OPEC+ and concerns over a slowdown in the global economy.」

「Crude oil prices remained broadly within a certain range despite the impact of changes in the international situation and other factors. The Group is working to limit fluctuations in results by collecting fuel surcharges and implementing appropriate hedging, while continuing to monitor the impact on economic conditions and the Group's results.」

「Meanwhile, crude oil prices, which affect fuel costs, international passenger revenue and international cargo revenue, remained broadly within a certain range despite the impact of changes in the international situation and other factors. The Group is working to limit fluctuations in results by collecting fuel surcharges and implementing appropriate hedging, while continuing to monitor the impact on economic conditions and the Group's results.」

「Crude oil prices had continued to rise from the previous fiscal year, but began to fall from late May due to concerns over an economic slowdown resulting from US-China trade friction and increases in US crude oil and petroleum product inventories. However, from mid-June onward, they began to rise again due to factors including tensions between the United States and Iran, resulting in an uncertain situation.」

「Crude oil prices, which affect fuel costs, international passenger revenue and international cargo revenue, had risen sharply year on year in the first half due to the extension of OPEC's coordinated production cuts and heightened geopolitical risks resulting from escalating tensions in the Middle East, but fell from December onward and have since shown volatile movements.」

「Crude oil prices rose sharply year on year due to the extension of OPEC's coordinated production cuts and heightened geopolitical risks resulting from escalating tensions in the Middle East. The impact on economic conditions and the Group's results therefore requires continued monitoring.」

「Crude oil prices, which affect the Group's fuel procurement costs, international passenger revenue and international cargo revenue, remained higher year on year due to the extension of OPEC's coordinated production cuts and heightened geopolitical risks resulting from escalating tensions in the Middle East. Meanwhile, the yen appreciated against the US dollar year on year from January onward against a backdrop that included concerns over the US political situation.」

「Crude oil prices, which affect the Company's fuel procurement costs, international passenger revenue and international cargo revenue, remained relatively high year on year and rose particularly from July onward due to the extension of OPEC's coordinated production cuts and geopolitical risks, including political instability in Saudi Arabia. Meanwhile, the yen depreciated against the US dollar year on year due to FOMC rate hikes from mid-June onward and expectations for progress on US tax reform legislation toward the end of November.」

「Crude oil prices, which affect the Company's fuel procurement costs, international passenger revenue and international cargo revenue, remained higher year on year and rose particularly from July onward following upward revisions to crude oil demand forecasts by the International Energy Agency (IEA) and OPEC. Meanwhile, although the US dollar exchange rate remained broadly at the same level as in the previous year, the yen depreciated from mid-June onward alongside FOMC rate hikes.」

「Although crude oil prices, which affect the Company's fuel procurement costs, international passenger revenue and international cargo revenue, remained higher than in the previous year, they fell in June due in part to divisions within OPEC over coordinated production cuts. Meanwhile, the US dollar exchange rate remained broadly at the same level as in the previous year.」

「Crude oil prices, which affect our fuel procurement costs, international passenger revenue and international cargo revenue, remained lower than in the previous year but rose sharply from December onward due to factors including the agreement to cut oil production at an OPEC meeting. The US dollar exchange rate continued to trend toward a stronger yen compared with the previous year, but the yen weakened from December onward after the US Federal Open Market Committee raised its policy interest rate target range.」

「Crude oil prices, which affect our fuel procurement costs, international passenger revenue and international cargo revenue, remained lower than in the previous year, while the US dollar exchange rate continued to trend toward a stronger yen.」