Japan Airlines Group posted record revenue and profit for the fiscal year ending March 2026, hitting all of its financial targets despite an increasingly uncertain global environment.
The airline group reported revenue of JPY 2,012.5 billion (US$13.4 billion), up 9.1% from 2025 and the highest since the company relisted on the stock exchange.
EBIT reached JPY 218.0 billion (US$1.45 billion), a 26.4% increase, while net profit climbed 28.6% to JPY 137.6 billion (US$917 million).
Hitting every target
JAL reported that it achieved all three financial goals set out in its 2021-2025 medium-term management plan. The EBIT margin came in at 10.8%, above the 10% target. Return on Invested Capital reached 9.5%, clearing the 9% goal. And earnings per share hit JPY 306 (US$2.04), surpassing the JPY 290 (US$1.93) benchmark.
The company proposed a year-end dividend of JPY 50 (US$0.33) per share, bringing the full-year dividend to JPY 96 (US$0.64) per share.
What drove the results
Strong demand for international travel, particularly from inbound tourists, helped push revenue higher. Outbound business travel from Japan also showed a moderate recovery. International passenger numbers rose 5.6% year-on-year, with revenue from that segment up 9.1%.
Domestic travel also performed well. JAL captured passengers through demand stimulation efforts while maintaining effective revenue management. Domestic passenger numbers grew 5.8%, with revenue up 6.6%.
Cargo was a standout. International cargo revenue jumped 21.3%, driven by rapidly growing demand between Asia and North America. Domestic cargo revenue rose 7.3%.
Operating expenses increased 8.3% to JPY 1,834.0 billion (US$12.2 billion), largely due to higher variable costs tied to revenue growth, inflation, and increased investment in employees.
LCC performance mixed
JAL’s low-cost carrier business saw revenue grow 10.4% to JPY 114.9 billion (US$766 million), though EBIT declined 17.1% to JPY 9.6 billion (US$64 million).
ZIPAIR, despite a temporary slowdown in inbound demand, increased revenue by 8.4% by responding flexibly to market conditions. The carrier operated its first ever direct charter flights between Tokyo Narita and Orlando in February and March 2026. ZIPAIR has also been rolling out Starlink high-speed internet across its fleet, with plans to equip all aircraft by May 2026.
SPRING JAPAN posted a 19.2% revenue increase, capturing strong demand from Beijing and Shanghai despite unstable market conditions. The carrier launched new routes in late April between Tokyo Narita and Hakodate, and between Nagoya Chubu and Sapporo New Chitose.
Mileage and finance business grows steadily
JAL’s mileage, finance, and commerce segment continued its steady climb. Revenue rose 10.9% to JPY 222.2 billion (US$1.48 billion), with EBIT up 19.5% to JPY 45.5 billion (US$303 million). The growth was driven by higher passenger numbers and increased mileage points issued through JAL Card payments.
The company also launched a new service called the “Tralipi Program” in February 2026, allowing customers to earn JAL miles through automated foreign exchange trading.
Cautious outlook for the year ahead
The company acknowledged that the global environment has become increasingly uncertain, with crude oil prices rising rapidly due to tensions in the region. Despite these challenges, JAL said it will work to stabilize performance across both aviation and non-aviation businesses.
The consolidated forecast for fiscal year 2027 remains unchanged: revenue of JPY 2,095.0 billion (US$14.0 billion), EBIT of JPY 180.0 billion (US$1.2 billion), and net profit of JPY 110.0 billion (US$733 million).
To support investments under its new long-term strategy, JAL announced it will issue JPY 200 billion (US$1.33 billion) in bond-type class stock.
The company unveiled its “JAL Group Management Vision 2035” earlier this year, targeting an EBIT of JPY 300.0 billion (US$2.0 billion) by fiscal year 2030 and over JPY 350.0 billion (US$2.33 billion) by fiscal year 2035. The strategy aims to build a business portfolio that can withstand external shocks while creating social value.
JAL also introduced a new corporate slogan, “Soaring Together,” reflecting its vision for the future.
Other developments
JAL also recently earned its ninth consecutive 5-star rating from SKYTRAX, the highest possible ranking.
The airline participated in an IATA-led pilot program testing next-generation boarding using digital identity. The proof-of-concept used facial recognition linked to a smartphone’s mobile wallet for boarding and transfers, marking a world first for transfer processing using this technology.
On the cargo side, JAL strengthened its partnership with Cargolux Airlines, launching codeshare operations on the Tokyo Narita to Luxembourg route in March 2026. The airline also expanded codeshare flights with Kalitta Air on the Tokyo Narita to Chicago route.
Domestically, JAL has been refreshing its services under the theme “New Angles, New Stories – Reconnecting with Japan.” The JAL App was completely redesigned in April 2026 with a focus on simplicity and intuitive use. First Class dining and beverage offerings have also been updated to showcase Japan’s regional diversity. Haneda Airport lounges and the inflight magazine are set to be refurbished later this year.
