Terminal Closures and Fixed-Cost Reductions Amid COVID-19

「We have implemented thorough cost-reduction measures to minimize the impact of lower revenue. To date, in addition to reducing non-essential costs, we have reduced facility maintenance costs by partially closing terminals in line with passenger trends and reviewing operating methods, and reduced outsourced costs by bringing operations in-house. We have also reduced fixed personnel costs by partially returning executive compensation and reducing employee bonuses and temporary wages. We will continue working to maintain the effects of these reductions, contain cost increases as passenger numbers recover and review our cost structure to establish a framework for generating profit more efficiently.」

「In the second quarter, we continued working to reduce fixed costs by cutting non-essential costs, partially returning executive compensation and reducing employee bonuses, as well as reviewing facility maintenance costs within the limits that would not impair passenger convenience and reducing outsourced costs. In particular, for work requiring qualified personnel, such as inspections and maintenance of fire-protection and electrical equipment, we will encourage Group employees to obtain the necessary qualifications and promote bringing these operations in-house.」

「In response to the substantial cancellation of passenger flights at Haneda Airport, for domestic flights we closed the departure counters, security screening checkpoints and other facilities on the north side of Terminal 1 and the south side of Terminal 2 from 17 April to 30 June. For international flights, in addition to the security screening checkpoints and other facilities on the north side of Terminal 3, which had been closed since 23 March, we closed the international facilities in Terminal 2 from 11 April. In the closed areas, we reduced operating and management costs by switching off lights and suspending escalators, elevators and other equipment. In addition to reducing non-essential costs and fixed costs through the partial return of executive compensation, we reviewed outsourced costs such as cleaning and security expenses and brought operations in-house. We will continue working to reduce costs further.」