Interim report
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[REFERENCE TRANSLATION] Please note that this translation is to be used solely as reference and the financial statements in this material are unaudited. In case of any discrepancy between this translation and the Japanese original, the latter shall prevail. Consolidated Financial Results for the Three Months Ended June 30, 2026[IFRS] August 3, 2026 Company name Japan Airlines Co., Ltd Stock Listing Tokyo Stock Exchange Code No. 9201 URL: https://www.jal.com Representative Mitsuko Tottori, President Contact Maki Takahashi, General Manager, Finance Phone: +81-3-5460-3121 Scheduled date for dividend payment: - Supplementary explanations of the financial results: Yes Presentation for the financial results: Yes (for institutional investors and analysts) (Amounts are rounded down to the nearest million yen unless otherwise indicated) (1) Consolidated Operating Results (Cumulative) (Percentage compared to prior year) Revenue Profit before financing and income tax Interim Profit before tax Interim Profit attributable to owners of parent Interim Comprehensive income Three months ended June 30, 2026 Millions of Yen % Millions of Yen % Millions of Yen % Millions of Yen % Millions of Yen % 523,737 11.2 12,703 (72.1) 9,907 (75.8) 5,353 (80.2) (16,698) - Three months ended June 30, 2025 471,083 11.1 45,506 105.7 40,861 92.7 27,081 93.7 25,988 44.0 Interim earnings per share Diluted Interim earnings per share Yen Yen Three months ended June 30, 2026 9.09 - Three months ended June 30, 2025 60.04 - Total Assets Total Equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets (%) Equity per share attributable to owners of parent Millions of Yen Millions of Yen Millions of Yen % Yen As of June 30, 2026 3,373,785 1,490,408 1,447,338 42.9 2,499.09 As of March 31, 2026 3,198,757 1,334,765 1,289,639 40.3 2,586.99 1. Consolidated Financial Results for the Three Months Ended June 30, 2026 (April 1, 2026 to June 30, 2026) (Note) Profit before financing and income tax represents an index to monitor, compare and evaluate the JAL Group’s performance continuously. Profit before financing and income tax is Profit from which Income tax expense, Interest, and Finance income and expense are deducted. (2) Consolidated Financial Position
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Dividends per Share 1st Quarter End 2nd Quarter End 3rd Quarter End Fiscal Year End Total Yen Yen Yen Yen Yen Year Ended March 31, 2026 - 46.00 - 50.00 96.00 Year Ended March 31, 2027 - Year Ending March 31, 2027 (Forecast) 48.00 - 48.00 96.00 (Percentage compared to prior year) Revenue Profit before financing and income tax Profit attributable to owners of parent Entire Fiscal Year Millions of Yen % Millions of Yen % Millions of Yen % 2,095,000 4.1 180,000 (17.4) 110,000 (20.1) 2. Dividends (Note) Revisions to the most recently disclosed dividends forecast: None Please refer to “1. Summary of Business Results (4) The Dividends for the Current Term” in the Attachment. 3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2027 (Note) Revisions to the most recently disclosed forecast: None Please refer to “1. Summary of Business Results (3) Explanations of Forecast of Consolidated Financial Results” in the Attachment. Notes (1) Changes in significant consolidated subsidiaries during this period : None (2) Changes in accounting policies/changes in accounting estimates 1) Changes in accounting policies due to revisions in accounting standards under IFRS: None 2) Changes in accounting policies other than 1): None 3) Changes in accounting estimates: None (3) Number of shares issued (common stock) (a) Total number of shares issued at the end of the period (including treasury shares) As of June 30, 2026 : 437,143,500 As of March 31, 2026 : 437,143,500 (b) Number of treasury shares at the end of the period As of June 30, 2026 : 7,315,829 As of March 31, 2026 : 7,315,776 (c) Average number of shares outstanding During the three months ended June 30, 2026 : 429,827,706 During the three months ended June 30, 2025 : 436,557,021 ※Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm：Yes (voluntary) ※Explanation for appropriate use of forecasts and other notes (Remarks on the description on future forecast) The forward-looking statements such as operational forecasts contained in this statement summary are based on information currently available to the Company and certain assumptions which are regarded as legitimate. However, it does not mean that we guarantee its achievement. ※The Company holds a presentation for institutional investors and analysts on August 3, 2026. Documents distributed at the presentation are scheduled to be posted on our website on the same day.
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1. Summary of Business Results 2 (1) Summary of Business Results 2 (2) Summary of Financial Position 9 (3) Explanations of Forecast of Consolidated Financial Results 9 2. Condensed Quarterly Consolidated Financial Statement and Primary Notes 10 (1) Condensed Quarterly Consolidated Statement of Financial Position 10 (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Other Comprehensive Income 12 (3) Condensed Quarterly Consolidated Statement of Changes in Equity 14 (4) Condensed Quarterly Consolidated Statement of Cash flows 16 (5) Notes for Condensed Quarterly Consolidated Financial Statements 17 (Reporting Company) 17 (Basis of Preparation) 17 (Going Concern Assumptions) 17 (Revenue) 18 (Segment Information) 22 Attachment CONTENTS - 1 -
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(JPY Bn) Three months ended June 30, 2025 Three months ended June 30, 2026 % or points compared to prior period Revenue 471.0 523.7 111.2% Operating Expense 435.4 516.8 118.7% Fuel 94.0 148.8 158.4% Excluding Fuel 341.4 367.9 107.8% Profit or loss before financing and income tax (EBIT) 45.5 12.7 27.9% EBIT Margin (%) 9.7 2.4 (7.2) Interim Profit attributable to owners of parent 27.0 5.3 19.8% 1. Summary of Business Results The business environment of the first quarter (from April 1, 2026 to June 30, 2026) was that the sharp rise in fuel cost due to the escalating tension in the Middle East and the persistent depreciation of yen, exerted a significant upward force on operating costs. Despite this business environment, International Passenger sales performed well and achieved a significant year-on-year increase in unit revenue. This was driven by the continuing strong inbound demand and outbound business demand from Japan, as well as the revenue management aimed to maximize the revenue, enabled by accurately leveraging the increased fuel surcharge table and the tightening supply-demand balance resulting from the flight suspensions by airlines in the Middle East. Domestic Passenger sales also progressed steadily, with unit revenue growing substantially year-on-year as a result of flexible revenue management. International Cargo sales also progressed steadily driven by increasing in the number of large freighters and the volume of high-value-added cargo, and yield improvement by capturing the tight supply and demand and thorough the application of fuel surcharge. As a result, our earnings before interest and taxes (hereinafter referred to as “EBIT”) was 12.7 billion yen. (1) Summary of Business Results The revenue for the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026 hereinafter referred to as the “First Quarter Period”) increased by 11.2% year on year to 523.7 billion yen, the operating expense increased by 18.7% year on year to 516.8 billion yen, the EBIT decreased by 72.1% year on year to 12.7 billion yen, the profit attributable to owners of parent decreased by 80.2% year on year to 5.3 billion yen. Consolidated financial results are as follows. (Note) 1. Figures have been truncated and percentages are rounded off to the first decimal place. 2. Profit or loss before financing and income tax is defined as EBIT for the JAL Group. EBIT is calculated as Profit or Loss for the current fiscal year excluding Income tax expense, Interest, and Finance income and expense. 3. EBIT Margin=EBIT/Revenue. The JAL Group has been driving the business portfolio transformation after the company’s experience with the COVID pandemic. While pursuing growth, we are simultaneously establishing a structure capable of agilely responding to various risks probable in the future. To this end, we aim to create new business models particularly in non-aviation domains and expand the overall profitability of the Group. As we enhance the flexibility and resilience of our entire business, we will strategically execute growth investments and accelerate this transformation to steadily achieve not only our EBIT target of JPY 180 billion in the current fiscal year - the first year of the “JAL Group Management Vision 2035” - but also JPY 300 billion in FY2030 and JPY 350 billion in FY2035. The main topics are the growth and expansion of profit in the International Passenger Business and the “Mileage/Finance and Commerce Business”, as well as the establishment of a sustainable Domestic Passenger Business. For the “Full Service Carrier Business”, we will expand the scale of our International Passenger Business by up-gauging aircraft size and introducing more medium to long-haul aircraft. For the Domestic Passenger Business, on the other hand, we will establish a sustainable domestic network that serves as vital social infrastructure, as we rapidly improve the profitability through the introduction of fuel surcharges, collaboration with other airlines, and cross-industry improvements in the supply-demand balance. For the Cargo business, we will expand our freighter network by introducing additional large freighters and expanding the transport of high-value- added cargo. For the “LCC Business”, we will scale up our international presence by expanding the network from Narita International Airport mainly with ZIPAIR - our medium to long-haul international LCC. Furthermore, we will accelerate the business diversification with the “Mileage/Finance and Commerce Business” through strategic investments and broadening cross-industry partnerships both - 2 -
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domestically and globally. The JAL Group has maintained a consolidated profit in the first quarter (from April 1,2026 to June 30, 2026) led by both the power of foreign currency earnings in the International Passenger Business and the revenue diversification with non-aviation business, despite the extremely volatile external environment with demand shifts and soaring fuel costs driven by the escalating Middle East tensions. Notably, the stable revenues in the “Mileage/Finance and Commerce Business” forming the foundation for profitability, represent as a result of the steady progress in the business model reform and the business portfolio transformation that we have been promoting since the COVID pandemic. Furthermore, toward the realization of the “JAL Group Management Vision 2035”, we issued the Series 1 Bond-Type Class Stock on June 3, 2026, to implement large-scale growth investments while maintaining a strong financial foundation. The proceeds secured through this issuance will be used to fund a portion of the capital investment for the purchase of cutting-edge aircraft, including the Airbus A350 and Boeing 737-8. Regarding human capital management, we will continue to foster an environment where diverse talents can thrive across a wide range of fields and realize the creation of new value. For the Green Transformation, we have been operating environmentally friendly flights with the introduction of the Airbus A350-1000. Going forward, we will continue to work alongside our customers and society to expand the use of SAF, aiming to take climate action while achieving business growth. - 3 -
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(JPY Bn) Three months ended June 30, 2025 Three months ended June 30, 2026 % or points compared to prior period Full Service Carrier Business 369.3 420.2 113.8% INTERNATIONAL 220.8 266.2 120.5% Passenger operations 184.9 211.6 114.4% Cargo and mail-service operations 35.5 54.1 152.4% Luggage operations 0.3 0.4 113.4% DOMESTIC 142.4 147.7 103.7% Passenger operations 134.2 139.0 103.6% Cargo and mail-service operations 8.1 8.5 105.7% Luggage operations 0.1 0.1 106.8% OTHER 5.9 6.2 103.7% <Full Service Carrier Business> The revenue for the First Quarter Period increased by 13.8% year on year to 420.2 billion yen, and EBIT was loss of 0.8 billion yen (EBIT of 30.7 billion yen in the same period in the previous year) (Revenue and segment profit are figures before intersegment eliminations.) Revenue Results (FSC) (Note) Figures have been truncated and percentages are rounded off to the first decimal place. - 4 -
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Three months ended June 30, 2025 Three months ended June 30, 2026 % or points compared to prior period INTERNATIONAL Revenue passengers carried (number of passengers) 1,955,922 1,947,506 99.6% Revenue passenger km (1,000 passenger-km) 11,045,771 10,813,526 97.9% Available seat km (1,000 seat-km) 12,827,389 12,731,201 99.3% Revenue passenger-load factor (%) 86.1 84.9 (1.2) Revenue cargo ton-km (1,000 ton-km) 774,453 880,395 113.7% Mail ton-km (1,000 ton-km) 22,389 17,312 77.3% DOMESTIC Revenue passengers carried (number of passengers) 9,081,699 8,832,736 97.3% Revenue passenger km (1,000 passenger-km) 6,880,404 6,722,550 97.7% Available seat km (1,000 seat-km) 8,653,559 8,472,709 97.9% Revenue passenger-load factor (%) 79.5 79.3 (0.2) Revenue cargo ton-km (1,000 ton-km) 76,112 72,915 95.8% Mail ton-km (1,000 ton-km) 5,960 6,031 101.2% TOTAL Revenue passengers carried (number of passengers) 11,037,621 10,780,242 97.7% Revenue passenger km (1,000 passenger-km) 17,926,175 17,536,076 97.8% Available seat km (1,000 seat-km) 21,480,949 21,203,911 98.7% Revenue passenger-load factor (%) 83.5 82.7 (0.7) Revenue cargo ton-km (1,000 ton-km) 850,566 953,311 112.1% Mail ton-km (1,000 ton-km) 28,349 23,343 82.3% Traffic Results (Full Service Carrier) 1. Revenue Passenger Kilometers (RPK) is the number of fare-paying passengers multiplied by the distance flown (km). Available Seat Kilometers (ASK) is the number of available seats multiplied by the distance flown (km). Revenue Cargo Ton Kilometers (RCTK) is the amount of cargo (ton) transported multiplied by the distance flown (km). 2. The distance flown between two points, used for calculations of RPK, ASK and RCTK above, is based on the great-circle distance and according to statistical data from IATA (International Air Transport Association) and ICAO (International Civil Aviation Organization). 3. Full Service Carrier (International): Japan Airlines Co., Ltd., Japan Transocean Air Co., Ltd. Full Service Carrier (Domestic): Japan Airlines Co., Ltd., J-Air Co., Ltd., Japan Air Commuter Co., Ltd., Hokkaido Air System Co., Ltd., Japan Transocean Air Co., Ltd. and Ryukyu Air Commuter Co., Ltd., 4. Figures have been truncated and percentages are rounded off to the first decimal place. - 5 -
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The JAL Group has achieved a significant increase in revenue in the first quarter (from April 1, 2026 to June 30, 2026) year on year. For International Passenger, the unit price increased significantly year-on-year, despite the extremely volatile external environment with demand shifts and soaring fuel costs driven by the escalating Middle East tensions. This growth was driven by the continuing strong inbound demand and outbound business demand from Japan, as well as the revenue management aimed to maximize the revenue by leveraging the increased fuel surcharge table and the tightening supply-demand balance resulting from the flight suspensions by airlines in the Middle East. As a result, the revenue exceeded the previous year’s level. Regarding flight operations, we will increase flights on the Narita-San Diego and Bengaluru routes, upgrading them to daily operations from September 2026 onwards. Furthermore, to accommodate robust inbound demand, we will increase flights on the Narita-Melbourne, Kansai-Los Angeles, and Haneda-Helsinki routes to operate daily during certain periods. Additionally, by deploying the Airbus A350-1000, state-of-the-art aircraft returning from long-term maintenance, on the Haneda-London route, we will temporarily expand its network from 12 flights across 5 routes to 14 flights across 5 routes. Through these initiatives, we will continue striving to enhance customer convenience and further profitability. Furthermore, on April 15,2026, we completely redesigned our JAL app, in response to the rapid increase in first-time travelers and inbound tourists generated from diversifying air travel needs after the COVID pandemic. With this renewal, we focused on intuitive operability and a simple, universally accessible design to provide optimal information in a stress-free way, tailored to each customer’s specific circumstances, from travel preparation through to arrival. Going forward, we will continue to pursue and innovate convenience and contribute to realizing a society where all customers can travel effortlessly and reassuringly. For Domestic Passenger, steadily capturing robust demand amid the severe business conditions, we maintained the passenger numbers on par with the previous year. Furthermore, the unit price significantly increased year-on-year, as a result of capturing last- minute demand during the Golden Week holidays and executing agile pricing strategies in response to these late bookings. Consequently, the revenue exceeded the previous year's levels. The report by the expert committee on the future of domestic aviation was published on May 29, 2026, presenting crucial recommendations aimed at ensuring customer convenience and maintaining domestic flight networks. This report includes policies directly linked to our future business operations, such as the abolition of investment restrictions on specific airlines and the authorization of agile adjustments to flight schedules and capacity in response to specific route characteristics. We will swiftly adapt to these new recommendations and institutional reforms to drive the establishment of strategic collaborative frameworks with other airlines, as well as to strive to maintain a sustainable domestic route network with the further enhancement of the profitability in parallel. For International Cargo, in addition to operating our own freighters, we expanded our freighter network by increasing the flights of large freighters operated by Kalitta Air on North America routes and launching codeshare flights with Cargolux Airlines on Europe routes. In response to the soaring fuel market prices, we passed on costs through measures such as modifying our fuel surcharges scheme. Concurrently, by capturing robust demand between Asia and North America and focusing on the acquisition of high-value- added cargo such as pharmaceuticals and AI-related components, both cargo volume and unit prices significantly exceeded the previous year's levels, resulting in achieving substantial increase in revenue. For Domestic Cargo, although overall demand remained sluggish, we strived to capture new demand through new services such as security screening agency service. As a result, the revenue exceeded the previous year's levels. - 6 -
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(JPY Bn) Three months ended June 30, 2025 Three months ended June 30, 2026 % or points compared to prior period Revenue 30.4 32.4 106.7% International 25.9 27.0 103.9% Domestic 0.3 0.4 127.3% Others 4.1 5.0 122.4% Three months ended June 30, 2025 Three months ended June 30, 2026 % or points compared to prior period ZIPAIR Revenue passengers carried (number of passengers) 348,582 355,240 101.9% Revenue passenger km (1,000 passenger-km) 2,162,710 2,260,986 104.5% Available seat km (1,000 seat-km) 2,803,472 2,554,968 91.1% Revenue passenger-load factor (%) 77.1 88.5 11.3 SPRING JAPAN Revenue passengers carried (number of passengers) 279,916 179,545 64.1% Revenue passenger km (1,000 passenger-km) 469,556 284,442 60.6% Available seat km (1,000 seat-km) 533,264 338,173 63.4% Revenue passenger-load factor (%) 88.1 84.1 (3.9) <LCC Business> The revenue for the First Quarter Period increased by 6.7% year on year to 32.4 billion yen, and EBIT was loss of 0.1 billion yen (EBIT of 4.2 billion yen in the same period in the previous year) (Revenue and EBIT are figures before intersegment eliminations.) Revenue Results (LCC) (Note) Figures have been truncated and percentages are rounded off to the first decimal place. Traffic Results (LCC) 1. Revenue Passenger Kilometers (RPK) is the number of fare-paying passengers multiplied by the distance flown (km). Available Seat Kilometers (ASK) is the number of available seats multiplied by the distance flown (km). Revenue Cargo Ton Kilometers (RCTK) is the amount of cargo (ton) transported multiplied by the distance flown (km). 2. The distance flown between two points, used for calculations of RPK, ASK and RCTK above, is based on the great-circle distance and according to statistical data from IATA (International Air Transport Association) and ICAO (International Civil Aviation Organization). 3. Traffic Results for SPRING JAPAN includes both International and Domestic carriage. 4. Figures have been truncated and percentages are rounded off to the first decimal place. Flexibly responding to the rising demand in the LCC market, we achieved an increase in revenue year-on-year, while the number of aircraft remained flat from the previous year. ZIPAIR - an LCC for medium to long-haul international flights, completed the implementation of SpaceX’s satellite internet service named “Starlink” to all 8 owning aircraft of Boeing 787-8 in collaboration with Boeing Global Services on May 5, 2026. Therefore, ZIPAIR became the first airline in Asia to operate a fully Starlink-enabled fleet across its entire route network, allowing high-speed, low-latency, and free of charge internet access for all passengers aboard. Going forward, all passengers on the flights, regardless of destination or seat class, can connect Starlink Wi-Fi using their personal devices, with performance comparable to on-the-ground broadband. Leveraging the enhanced competitiveness led by these service improvements, we will temporarily increase flights on the Narita-Los Angeles, Honolulu, Vancouver, and Seoul routes to capture the robust summer travel demand. Furthermore, following strong passenger turnout on the first-ever direct charter flight from Japan to Orlando operated in February and March 2026, we have decided to operate three round charter flights (six flights in total) on the Narita-Orlando route in August 2026. We will continue to drive further - 7 -
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growth by combining enhancement of product value and agile expansion of route and number of flights. Meanwhile, Spring Japan - an LCC mainly operating to China, drove precise and efficient revenue management against the backdrop of a tighter supply-demand balance resulting from flight reductions by the Chinese airlines. Consequently, unit price increased significantly year on year. Going forward, through building a network with three distinct LCCs including Jetstar Japan, we will keep on contributing to the growth of both inbound and outbound travel while aiming to create new flows of people. <Mileage/Finance and Commerce Business> <Others> The revenue for the First Quarter Period increased by 13.3% year on year to 56.3 billion yen, and EBIT increased by 17.6% year on year to 12.0 billion yen. (Revenue and EBIT are figures before intersegment eliminations.) For Mileage/Finance, mileage issuance in the non-aviation domain has steadily increased, driven by organic growth in volume of payment alongside the expansion of the JAL Card business, as well as the broadening of global partnerships with overseas financial institutions such as Capital One and Bilt Rewards. Furthermore, to expand opportunities of earning mileage in daily life, we launched "JAL Mobile powered by ahamo" and "JAL Water," adding to the well-received "JAL Mobile powered by IIJmio”. Meanwhile, aiming to address diversifying customer needs, we drive to expand attractive rewards comparable to award tickets, such as "Miles-de-Experience", thus encouraging mileage redemptions in both aviation and non-aviation domains. Consequently, revenue generated from mileage issuance and redemption maintained high profit margins, contributing significantly to securing overall JAL Group profitability by absorbing temporary downward pressure on the aviation business caused by heightened tensions in the Middle East. Additionally, on April 30, 2026, we resolved to enter into a capital and business alliance (the “Capital and Business Alliance”) with Lifenet Insurance Company ("Lifenet Insurance") and acquired the shares in June, making it our equity-method affiliate. Under the Capital and Business Alliance, the Company and Lifenet Insurance will work on exploring and discussing the development of insurance products utilizing JAL’s brand strength, customer base, and assets such as JAL Miles, as well as establishing a framework for the JAL Group to sell Lifenet’s insurance products. Through this alliance, integrating insurance business into “JAL Mileage Lifestyle”, we aim to expand the customer base, drive business growth, and broaden the non-aviation business domain. We will continue to promote the “JAL Mileage Lifestyle” concept, which enhances the opportunities of earning and using mileage, thereby expanding our customer base and achieving profit growth. Commerce, led by strong trading of aircraft engine parts at JALUX and supported by solid performance across various business domains, recorded stable profits, alongside Mileage & Financial Services, contributed to securing overall profitability for the Group as a whole. - 8 -
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(2) Summary of Financial Position (Assets, liabilities and net asset) Assets at the end of the First Quarter Period increased by 175.0 billion yen from the end of the previous consolidated fiscal year to 3,373.7 billion yen, mainly due to the increase of cash and cash equivalents. Liabilities increased by 19.3 billion yen from the end of the previous consolidated fiscal year to 1,883.3 billion yen mainly due to the increase in contract Liabilities. Equity increased by 155.6 billion yen from the end of the previous consolidated fiscal year to 1,490.4 billion yen, mainly due to the recognition of other equity instruments through the issuance of the Bond-Type Class Shares, in spite of the dividends paid. Liquidity at hand was maintained at a sufficient amount of 1,157.4 billion yen at the end of the First Quarter, as well as the unused credit line of 150.0 billion yen. (Outline of Cash Flows) Cash and cash equivalents at the end of the First Quarter Period increased by 147.2 billion yen from the end of the previous consolidated fiscal year to 1,157.4 billion yen. 1 Cash Flows from Operating Activities As a total of quarterly profit before tax of 9.9 billion yen, non-cash expenses such as depreciation, and trade and other payables and receivables, cash flow from operating activities (inflow) was 97.8 billion yen (cash inflow of 81.0 billion yen in the same period of the previous year). 2 Cash Flows from Investing Activities Cash flow from investing activities (outflow) was 66.5 billion yen mainly due to the acquisition of fixed assets (cash outflow of 24.2 billion yen in the same period of the previous year). 3 Cash Flows from Financing Activities Cash flow from financing activities (inflow) was 114.1 billion yen mainly due to the issuance of shares (cash inflow of 145.7 billion yen in the same period of the previous year). (3) Explanations of Forecast of Consolidated Financial Results There are no changes to the full-year consolidated financial results forecast and dividend forecast announced in “Consolidated Financial Results for the year Ended March 31, 2026" dated April 30, 2026. - 9 -
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As of March 31, 2026 As of June 30, 2026 Millions of Yen Millions of Yen Assets Current assets Cash and cash equivalents 1,010,185 1,157,424 Trade and other receivables 254,576 252,035 Other financial assets 31,216 14,635 Inventories 60,606 74,394 Other current assets 88,961 98,115 Total current assets 1,445,545 1,596,606 Non-current assets Tangible fixed assets Flight equipment 1,041,696 1,026,451 Advances on flight equipment 115,612 121,592 Other tangible fixed assets 102,221 103,773 Total tangible fixed assets 1,259,530 1,251,818 Goodwill and intangible assets 111,731 116,591 Investment property 2,902 1,850 Investments accounted for using equity method 33,532 62,908 Other financial assets 182,127 169,682 Deferred tax assets 109,866 119,988 Retirement benefit asset 36,393 36,835 Other non-current assets 17,128 17,505 Total non-current assets 1,753,211 1,777,179 Total assets 3,198,757 3,373,785 2. Condensed Quarterly Consolidated Financial Statement and Primary Notes (1) Condensed Quarterly Consolidated Statement of Financial Position - 10 -
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As of March 31, 2026 As of June 30, 2026 Millions of Yen Millions of Yen Liabilities and equity Liabilities Current liabilities Trade and other payables 208,687 228,806 Interest-bearing liabilities 149,883 112,524 Other financial liabilities 73,523 88,332 Income taxes payable 7,445 3,400 Contract liabilities 484,519 529,501 Provisions 5,045 4,295 Other current liabilities 73,589 65,499 Total current liabilities 1,002,693 1,032,361 Non-current liabilities Interest-bearing liabilities 726,034 715,391 Other financial liabilities 13,443 15,135 Deferred tax liabilities 3,961 3,219 Provisions 28,568 28,194 Retirement benefit liability 82,321 82,401 Other non-current liabilities 6,967 6,673 Total non-current liabilities 861,297 851,015 Total liabilities 1,863,991 1,883,377 Equity Share capital 273,200 273,200 Capital surplus 270,540 464,804 Other equity instruments 177,679 177,679 Retained earnings 508,279 492,914 Treasury shares (21,213) (21,213) Accumulated other comprehensive income Financial assets measured at fair value through other comprehensive income 47,713 45,370 Effective portion of cash flow hedges 31,747 12,578 Exchange differences on translation of foreign operations 1,692 2,004 Total accumulated other comprehensive income 81,153 59,953 Total equity attributable to owners of parent 1,289,639 1,447,338 Non-controlling interests 45,126 43,070 Total equity 1,334,765 1,490,408 Total liabilities and equity 3,198,757 3,373,785 - 11 -
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Three months ended June 30, 2025 Three months ended June 30, 2026 Millions of Yen Millions of Yen Revenue International passenger revenue 210,947 238,650 Domestic passenger revenue 134,557 139,446 Other revenue 125,578 145,640 Total revenue 471,083 523,737 Other income 7,693 3,959 Operating expenses Personnel expenses (94,647) (100,745) Aircraft fuel (94,015) (148,894) Depreciation, amortization and impairment losses (40,781) (42,814) Other operating expenses (206,014) (224,399) Total operating expenses (435,459) (516,853) Operating profit 43,317 10,843 Share of profit of investments accounted for using equity method 211 596 Profit before investing, financing and income tax 43,529 11,440 Income/expenses from investments Investing income 2,416 1,370 Investing expenses (439) (107) Profit before financing and income tax 45,506 12,703 Finance income/expenses Finance income 501 2,268 Finance expenses (5,146) (5,063) Profit before tax 40,861 9,907 Income tax expense (12,749) (4,298) Profit 28,111 5,608 Profit attributable to Owners of parent 27,081 5,353 Non-controlling interests 1,030 255 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income 4,886 (3,664) Share of other comprehensive income of investments accounted for using equity method 56 56 Total of items that will not be reclassified to profit or loss 4,943 (3,607) Items that may be reclassified to profit or loss Effective portion of cash flow hedges (6,742) (18,641) Exchange differences on translation of foreign operations (356) 147 Share of other comprehensive income of investments accounted for using equity method 32 (205) Total of items that may be reclassified to profit or loss (7,066) (18,699) Other comprehensive income, net of tax (2,123) (22,307) Comprehensive income 25,988 (16,698) (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Other Comprehensive Income - 12 -
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Three months ended June 30, 2025 Three months ended June 30, 2026 Millions of Yen Millions of Yen Comprehensive income attributable to Owners of parent 25,257 (15,937) Non-controlling interests 731 (760) Earnings per share Basic earnings per share (Yen) 60.04 9.09 Diluted earnings per share (Yen) - - - 13 -
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Equity attributable to owners of parent Share capital Capital surplus Other equity instruments Retained earnings Treasury shares Accumulated other comprehensive income Financial assets measured at fair value through other comprehensive income Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Balance as of April 1, 2025 273,200 274,242 - 395,719 (1,473) 35,745 Profit - - - 27,081 - - Other comprehensive income - - - - - 4,930 Comprehensive income - - - 27,081 - 4,930 Issuance of other equity instruments - - 177,679 - - - Dividends - - - (20,081) - - Share-based payments transactions - 120 - - - - Transfer to hedged non-financial assets - - - - - - Changes in ownership interest in subsidiaries - (0) - - - - Transfer to retained earnings - - - 0 - (0) Total transactions with owners - 120 177,679 (20,081) - (0) Balance as of June 30, 2025 273,200 274,363 177,679 402,719 (1,473) 40,676 Equity attributable to owners of parent Non- controlling interests Total equity Accumulated other comprehensive income Total Equity attributable to owners of parent Effective portion of cash flow hedges Exchange differences on translation of foreign operations Total accumulated other comprehensive income Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Balance as of April 1, 2025 (3,860) 1,484 33,369 975,057 41,615 1,016,673 Profit - - - 27,081 1,030 28,111 Other comprehensive income (6,574) (179) (1,824) (1,824) (299) (2,123) Comprehensive income (6,574) (179) (1,824) 25,257 731 25,988 Issuance of other equity instruments - - - 177,679 - 177,679 Dividends - - - (20,081) (1,318) (21,400) Share-based payments transactions - - - 120 - 120 Transfer to hedged non-financial assets 202 - 202 202 239 442 Changes in ownership interest in subsidiaries - - - (0) 0 - Transfer to retained earnings - - (0) - - - Total transactions with owners 202 - 202 157,921 (1,078) 156,842 Balance as of June 30, 2025 (10,232) 1,304 31,748 1,158,236 41,268 1,199,504 (3) Condensed Quarterly Consolidated Statement of Changes in Equity Consolidated Financial Results for the First Quarter Period of FY2025 (April 1, 2025 to June 30, 2025) - 14 -
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Equity attributable to owners of parent Share capital Capital surplus Other equity instruments Retained earnings Treasury shares Accumulated other comprehensive income Financial assets measured at fair value through other comprehensive income Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Balance as of April 1, 2026 273,200 270,540 177,679 508,279 (21,213) 47,713 Profit - - - 5,353 - - Other comprehensive income - - - - - (2,343) Comprehensive income - - - 5,353 - (2,343) Issuance of new shares 97,500 96,534 - - - - Transfer from share capital to capital surplus △97,500 97,500 - - - - Dividends - - - (21,491) - - Share-based payments transactions - 230 - - - - Transfer to hedged non-financial assets - - - - - - Purchase of treasury shares - - - - (0) - Changes in ownership interest in subsidiaries - (0) - - - - Change in scope of consolidation - - - 773 - - Total transactions with owners - 194,263 - (20,718) (0) - Balance as of June 30, 2026 273,200 464,804 177,679 492,914 (21,213) 45,370 Equity attributable to owners of parent Non- controlling interests Total equity Accumulated other comprehensive income Total Equity attributable to owners of parent Effective portion of cash flow hedges Exchange differences on translation of foreign operations Total accumulated other comprehensive income Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Balance as of April 1, 2026 31,747 1,692 81,153 1,289,639 45,126 1,334,765 Profit - - - 5,353 255 5,608 Other comprehensive income (19,061) 113 (21,291) (21,291) (1,016) (22,307) Comprehensive income (19,061) 113 (21,291) (15,937) (760) (16,698) Issuance of new shares - - - 194,034 - 194,034 Transfer from share capital to capital surplus - - - - - - Dividends - - - (21,491) (2,354) (23,845) Share-based payments transactions - - - 230 - 230 Transfer to hedged non-financial assets (107) - (107) (107) (126) (234) Purchase of treasury shares - - - (0) - (0) Changes in ownership interest in subsidiaries - - - (0) 0 - Change in scope of consolidation - 198 198 971 1,185 2,156 Total transactions with owners (107) 198 90 173,636 (1,295) 172,341 Balance as of June 30, 2026 12,578 2,004 59,953 1,447,338 43,070 1,490,408 Consolidated Financial Results for the First Quarter Period of FY2026 (April 1, 2026 to June 30, 2026) - 15 -
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Three months ended June 30, 2025 Three months ended June 30, 2026 Millions of Yen Millions of Yen Cash flows from operating activities Profit before tax 40,861 9,907 Depreciation, amortization and impairment losses 40,781 42,814 Loss (gain) on sale and retirement of fixed assets (3,590) (308) Increase (decrease) in retirement benefit liability (353) 79 Interest and dividend income (2,798) (2,274) Interest expenses 3,753 4,297 Foreign exchange loss (gain) 690 (983) Share of loss (profit) of investments accounted for using equity method (211) (596) Decrease (increase) in trade and other receivables (4,813) (2,990) Decrease (increase) in inventories (2,898) (8,013) Increase (decrease) in trade and other payables (10,084) 19,650 Increase (decrease) in contract liabilities 16,595 44,967 Other, net 7,965 (1,002) Subtotal 85,896 105,547 Income taxes paid (4,869) (7,693) Net cash provided by (used in) operating activities 81,027 97,854 Cash flows from investing activities Purchase of non-current assets (30,543) (43,204) Proceeds from sales of non-current assets 5,006 1,081 Purchase of investments accounted for using equity method - (29,452) Purchase of other financial assets (1,774) (267) Payments for loans receivable (288) (553) Collection of loans receivable 186 191 Interest received 616 1,307 Dividends received 2,427 4,201 Other, net 103 127 Net cash provided by (used in) investing activities (24,265) (66,568) Cash flows from financing activities Net increase (decrease) in short-term borrowings 18,407 4,997 Repayments of long-term borrowings (20,956) (20,805) Redemption of bonds - (30,000) Proceeds from issuance of shares - 193,640 Proceeds from issuance of other equity instruments 177,160 - Interest paid (2,632) (3,021) Dividends paid (19,117) (20,686) Dividends paid to non-controlling interests (1,222) (957) Distributions to owners of other equity instruments - (3,009) Repayments of lease liabilities (5,465) (5,628) Other, net (442) (416) Net cash provided by (used in) financing activities 145,730 114,113 Effect of exchange rate changes on cash and cash equivalents (1,320) 1,514 Net increase (decrease) in cash and cash equivalents 201,172 146,914 Cash and cash equivalents at beginning of period 749,030 1,010,185 Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation - 325 Cash and cash equivalents at end of period 950,202 1,157,424 (4) Condensed Quarterly Consolidated Statement of Cash Flows - 16 -
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(5) Notes for Condensed Quarterly Consolidated Financial Statements (Reporting Company) Japan Airlines Co., Ltd. (hereinafter the “Company”) is a stock company located in Japan. The registered address of its Head Office is 4-11, 2-chome Higashi-shinagawa, Shinagawa-ku, Tokyo. The Company’s condensed quarterly consolidated financial statements for the three months ended June 30, 2026 consists of the Company and its subsidiaries (the “JAL Group”) and interests in affiliates and jointly controlled entities. The JAL Group’s main businesses are “Full Service Carrier (hereinafter “FSC”) Business”, “LCC Business”, and Mileage/Finance and Commerce Business”. Details of each business are described in Note “Revenue.” (Basis of Preparation) 1) Method of preparation of condensed quarterly consolidated financial statements The Company’s quarterly consolidated financial statements have been prepared in accordance with the quarterly financial statement preparation standards of the Tokyo Stock Exchange, Inc. In accordance with the provisions of Article 5, Paragraph 2 of these preparation standards, the summary quarterly consolidated financial statements are prepared based on International Accounting Standard 34 "Interim Financial Reporting" (hereinafter "IAS 34"). However, in accordance with the provisions of Article 5, Paragraph 5 of these preparation standards, some of the disclosure items and notes required by IAS 34 have been omitted. Therefore, these financial statements are not a set of condensed financial statements in accordance with IAS 34. 2) Functional currency and presentation currency The JAL Group’s condensed quarterly consolidated financial statements are stated in Japanese yen, the Company’s functional currency, rounded down to the nearest million yen. (Going Concern Assumptions) None - 17 -
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Reportable Segment FSC Business LCC Business Mileage/ Finance and Commerce Business Others Sub-total Internal transaction adjustment Total Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen International Passenger 184,966 25,988 - - 210,955 - - Cargo and mail 35,523 - - - 35,523 - - Baggage 391 - - - 391 - - Sub-total 220,880 25,988 - - 246,869 - - Domestic Passenger 134,268 321 - - 134,589 - - Cargo and mail 8,115 - - - 8,115 - - Baggage 106 - - - 106 - - Sub-total 142,489 321 - - 142,811 - - Total revenues from international and domestic operations 363,370 26,310 - - 389,680 - - Mileage/Finance Commerce - - 49,713 - 49,713 - - Travel agency - - - 25,359 25,359 - - Others 5,980 4,142 - 34,569 44,691 - - Total revenues 369,350 30,452 49,713 59,928 509,445 (38,362) 471,083 (Revenue) (1) Breakdown of Revenue Revenue and Segment Revenue Consolidated Financial Results for the first quarter of FY2025 (April 1, 2025 to June 30, 2025) (Note) Segment revenue is stated before elimination of intersegment transactions. - 18 -
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Reportable Segment FSC Business LCC Business Mileage/ Finance and Commerce Business Others Sub-total Internal transaction adjustment Total Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen International Passenger 211,648 27,009 - - 238,658 - - Cargo and mail 54,143 - - - 54,143 - - Baggage 443 - - - 443 - - Sub-total 266,235 27,009 - - 293,245 - - Domestic Passenger 139,072 409 - - 139,481 - - Cargo and mail 8,578 - - - 8,578 - - Baggage 113 - - - 113 - - Sub-total 147,764 409 - - 148,173 - - Total revenues from international and domestic operations 414,000 27,419 - - 441,419 - - Mileage/Finance Commerce - - 56,337 - 56,337 - - Travel agency - - - 21,656 21,656 - - Others 6,202 5,070 - 34,993 46,267 - - Total revenues 420,203 32,490 56,337 56,649 565,680 (41,942) 523,737 Consolidated Financial Results for the first quarter of FY2026 (April 1, 2026 to June 30, 2026) (Note) Segment revenue is stated before elimination of intersegment transactions. - 19 -
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The JAL Group operates “FSC Business”, “LCC Business”, mainly in passenger and baggage carriage or mail and cargo handling in both international and domestic routes, “Mileage/Finance and Commerce Business”, mainly in mileage award services provided to its member customers, and “Other” businesses. Revenues arising out of these businesses are recognized in accordance with contracts with customers, and there is no significant financing component in the contracts. All considerations in contracts with customers are reflected in transaction prices.. The JAL Group operates a customer loyalty program called “JAL Mileage Bank”. Members of the JAL Mileage Bank can collect miles through flights with the airlines in JAL Group or other services and can redeem them for flights with JAL group or other partners' services. Miles granted are deemed as performance obligations and contract liabilities are recognized. The transaction price is allocated to each performance obligation based on the ratio of the stand-alone selling price, considering the utilization rate of the service and the expected expiration. A transaction price allocated as performance obligations of miles is deferred as contract liabilities in the condensed quarterly consolidated statement of financial position, and revenue is recognized as miles are redeemed. FSC Business・LCC Business In the FSC Business and LCC Business, the JAL Group provides services related to the international and domestic transportation of passengers, cargo and mail and baggage on aircraft. The main revenues are recognized when the performance obligations are satisfied, as follows. Passenger Passenger revenue is mainly revenue earned from passenger transportation services using aircraft. The JAL Group has the obligation to provide customers with international and domestic air transportation services according to the Conditions of Carriage. The performance obligation is satisfied upon completion of the passenger's air transportation service. The consideration for transactions may vary because the JAL Group may offer discounts when selling tickets or pay incentives based on the amount of sales. In addition, consideration for a transaction is generally received in advance at a point in time before the performance obligation is satisfied. Cargo and mail Cargo and mail revenues are mainly revenues earned from air cargo and air mail handling operations. The JAL Group has the obligation to provide international and domestic cargo and mail transportation services. The performance obligation is satisfied upon completion of cargo and mail air transportation service. The amount of variable consideration included in revenue is not material. Consideration for a transaction is generally received within two months after the completion of cargo and mail air transportation. Baggage Baggage revenue is mainly revenue earned from baggage transportation services that accompany passenger transportation on aircraft. The JAL Group has the obligation to provide customers with international and domestic baggage transportation services. The performance obligation is satisfied upon completion of baggage air transportation service. The amount of variable consideration included in revenue is not material. Consideration for a transaction is generally received on the day of baggage transportation.. - 20 -
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Mileage/Finance and Commerce Business In the Mileage/Finance and Commerce, the JAL Group provides benefit services to JAL Mileage Bank member customers through its group and partner companies, offer credit card related services, and sell products through wholesale and retail channels. The main revenues are recognized when the performance obligations are satisfied, as follows. Mileage/Finance and Commerce Mileage/Finance and Commerce Revenue includes income from providing benefit services related to miles, income from providing credit card related services, and income from product sales. In terms of income from providing benefit services related to miles, the JAL Group is obligated to provide benefit services in exchange for miles granted to its member customers by its group or partner companies. This performance obligation is satisfied upon the completion of providing the benefit services. The timing of receiving monetary compensation varies depending on the service that grants the miles. The timing of receiving compensation for miles granted in accordance with the use of the JAL Group's air transportation services is mainly before the use of the air transportation services, while the timing of receiving compensation for miles granted in accordance with the use of services by partner companies is mainly after the use of those services. In terms of income from providing credit card related services, the JAL group is primarily obligated to provide payment services to the card members who are mainly its customers. This performance obligation is satisfied according to the membership period based on the contract with the card members, and the transaction compensation is usually received in advance before the performance obligation is satisfied. Additionally, in terms of income from product sales, the JAL Group sells mainly clothing, miscellaneous goods, food, etc., through stores and e-commerce, and is obligated to deliver these products to customers. This performance obligation is satisfied upon the completion of product delivery or customer inspection, and the transaction compensation is usually received after the performance obligation is satisfied. The amount of variable consideration included in these revenues is not material. Others In “Others”, the JAL Group is mainly engaged in planning and sales of air travel package tour, undertaking ground handling services for foreign airline flights. Revenue related to planning and sales of air travel package tours is mainly recognized over a certain period of time as the service is provided, and consideration for a transaction is generally received in advance at a point in time before the performance obligation is satisfied. Additionally, revenue from ground handling services for foreign airline flights is mainly recognized upon the completion of providing the service, and consideration for a transaction is generally received at a point in time after the performance obligation is satisfied. - 21 -
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Reportable segment Others (Note)1 Total Adjustment (Note) 2 Consolidated Statement (Note) 3FSC Business LCC Business Mileage/ Finance and Commerce Business Sub-total Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Revenue Sales to external customers 357,199 26,996 33,927 418,123 52,959 471,083 - 471,083 Intersegment 12,151 3,456 15,785 31,393 6,969 38,362 (38,362) - Total 369,350 30,452 49,713 449,516 59,928 509,445 (38,362) 471,083 Profit or loss before financing and income tax 30,716 4,235 10,240 45,193 1,358 46,552 (1,045) 45,506 Finance income - - - - - - - 501 Finance expenses - - - - - - - (5,146) Profit before tax - - - - - - - 40,861 (Segment Information) (1) Overview of segment reporting The reportable segments of the JAL Group are components of the Company about which separate financial information is available and evaluated regularly by the Board of Directors in deciding how to allocate resources and evaluating business performance. Based on similar economic characteristics, the reportable segments of the JAL Group are aggregated into the “FSC Business,” “LCC Business,” and “Mileage/Finance and Commerce Business.” Both “FSC Business” and “LCC Business” primarily include passenger, baggage carriage, mail and cargo handling in both international and domestic routes, while “Mileage/Finance and Commerce Business” primarily includes mileage award services provided to its member customers. (2) Information on reportable segment Revenue and business performance by JAL Group’s reportable segment are as follows. Intersegment sales are based on the current market price. Consolidated financial results for the first quarter of FY2025 (April 1, 2025 to June 30, 2025) (Note) 1. “Others” generally comprise travel business 2. Adjustment includes intersegment elimination. 3. Segment profit has been adjusted with profit before financing and income tax on the condensed quarterly consolidated statement of profit or loss and other comprehensive income. - 22 -
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Reportable segment Others (Note)1 Total Adjustment (Note) 2 Consolidated Statement (Note) 3FSC Business LCC Business Mileage/ Finance and Commerce Business Sub-total Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Revenue Sales to external customers 409,730 28,103 37,851 475,685 48,052 523,737 - 523,737 Intersegment 10,473 4,386 18,485 33,345 8,597 41,942 (41,942) - Total 420,203 32,490 56,337 509,030 56,649 565,680 (41,942) 523,737 Profit or loss before financing and income tax (812) (134) 12,047 11,099 2,672 13,772 (1,068) 12,703 Finance income - - - - - - - 2,268 Finance expenses - - - - - - - (5,063) Profit before tax - - - - - - - 9,907 Consolidated financial results for the first quarter of FY2026 (April 1, 2026 to June 30, 2026) (Note) 1. “Others” generally comprise travel business. 2. Adjustment includes intersegment elimination. 3. Segment profit has been adjusted with profit before financing and income tax on the condensed quarterly consolidated statement of profit or loss and other comprehensive income. - 23 -