Business · Companies · 6 hrs ago
JAL’s first-half profit fell as fuel costs surged
JAL’s revenue rose but profit fell in the six months from April to September 2026.
The Japanese airline reported revenue of 1.0989 trillion yen, up 11.7% from a year earlier, while operating profit fell 36% to 70.1 billion yen.
Higher fuel prices drove the decline: the average price of Singapore jet fuel was $160 a barrel, compared with JAL’s planned $90, and fuel costs rose 47.4%.
Higher international passenger fares and stronger cargo demand helped offset some of the pressure, as did growth in JAL’s non-airline businesses.
Domestic passenger services remain a challenge because the airline has limited room to raise fares and the business earns relatively little.
JAL plans domestic fuel surcharges from fiscal 2028, the year ending in March 2028, as it seeks to improve those returns.
The company’s full-year profit target may be harder to reach, but the figures provided do not say what JAL will do next to compete with ANA in Japan.
JAL’s revenue rose 11.7% year on year to 1.0989 trillion yen in the six months to September.
Its EBIT fell 36% to 70.1 billion yen, while net profit dropped 42.2% to 39 billion yen.
Fuel costs surged 47.4% to 285.6 billion yen as average Singapore kerosene prices reached $160 a barrel, far above the company’s $90 plan.
Tensions in the Middle East contributed to the higher fuel prices.
Higher international passenger fares and cargo revenue, along with growth in non-airline businesses, helped support earnings.
- Who
- Japan Airlines (JAL).
- What
- Its first-half EBIT and net profit fell, despite higher revenue, as fuel costs surged.
- When
- The first half of the fiscal year ending March 2027, covering April to September. JAL announced the results on November 2.
- Where
- Japan; the results concern JAL’s domestic and international businesses.
- Why
- Fuel prices rose amid heightened tensions in the Middle East, pushing up fuel costs.
This story does not have two clearly opposing sides.
JAL recorded first-half revenue of 1.0989 trillion yen, EBIT of 70.1 billion yen and net profit of 39 billion yen.
JAL announced its results for the second quarter of the fiscal year ending March 2027.
JAL plans to introduce fuel surcharges on domestic routes.
- Revenue
- 1.0989 trillion yen, up 11.7% year on year
- EBIT
- 70.1 billion yen, down 36%
- Net profit
- 39 billion yen, down 42.2%
- Fuel costs
- 285.6 billion yen, up 47.4%
- Average Singapore kerosene price
- $160 a barrel, compared with JAL’s $90 plan