The JAL Group today announced the consolidated financial results for first quarter of fiscal year 2017 – the period from April 1 to June 30, 2017. During the first three months of the fiscal year ending March 31, 2018, the Japanese economy is on a moderate recovery; The employment and income situation is improving, while private consumption and business investment are picking up. In overseas economies, Weakness was observed in Europe partially. Crude oil prices, which affect our fuel purchasing costs, international passenger revenue and international cargo revenue, have been higher than the year before, but decreased from June 2017 due to disarray following OPEC agreed to reduce oil production. The JPY/USD foreign exchange rate showed the Japanese yen maintaining the same level compared to the last year.
Under these economic conditions, we worked to increase profit consciousness of all our employees through efforts based on the JAL Philosophy and the divisional profitability management system, realize greater management efficiencies, and provide unparalleled service to customers, anchored in our firm commitment to flight safety, in order to reach the targets set out in Fiscal Years 2017-2020 JAL Group Medium Term Management Plan announced on April 28, 2017.
As a result of the above, consolidated operating revenue increased by 5.9% year-on-year to 314.8 billion yen and operating expense increased by 5.4% to 290.0 billion yen, while operating profit increased by 12.0% year on year to 24.7 billion yen and ordinary profit increased by 24.6% to 24.5 billion yen. Profit attributable to owners of parent for the first quarter was 19.5 billion yen, up 32.9% year on year.
