Impact of lower passenger numbers and seat utilization due to fixed and operating cost burdens
First written in FY2023. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
Skymark Airlines moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2020: 9 of 23 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The company's cost structure has a high proportion of fixed costs, including personnel expenses, aircraft lease payments, maintenance costs, and facility usage fees, which are difficult to reduce immediately in line with fluctuations in passenger numbers and seat utilization. Accordingly, even a slight decline in passenger unit prices or utilization due to an economic downturn or intensified competition could materially worsen operating income or loss. In addition, years of cost-cutting measures have limited the scope for further reductions, putting further downward pressure on earnings.」
The company explicitly recognized the risk that, in addition to its fixed-cost burden, years of cost-cutting measures have left limited scope for further reductions. - FY2023First statedAnnual report
「As a result, even slight declines in passenger numbers, seat utilization, or passenger unit prices could have a significant effect on the company's financial condition and business performance.」
The company disclosed as a risk its earnings structure in which fixed costs such as personnel expenses, lease payments, maintenance costs, and airport rents, as well as operating costs such as fuel expenses and landing fees, continue to arise even when demand declines.