Japan Airlines profit falls 80 percent as fuel costs rise

International

Revenue increased across international and domestic operations, but higher expenses and weaker outbound demand weighed heavily on earnings

Japan Airlines recorded a sharp decline in profit during the April-to-June quarter of its 2026 financial year. Net profit fell by 80.2 per cent to $34 million as rising fuel prices and other operating costs offset continued revenue growth.

The airline generated revenue of $5.9 billion during the three-month period, an increase of 11.2 per cent compared with the same quarter a year earlier.

International business drives revenue growth

Revenue from international passenger services rose by 14.4 per cent to $1.3 billion. Domestic flight revenue increased more moderately, climbing 3.6 per cent to $886.1 million.

The figures indicate that demand remained resilient across both parts of the airline’s network, despite the pressure on profitability.

Fuel prices and higher costs squeeze margins

Japan Airlines attributed the earnings decline partly to higher fuel prices linked to the conflict in the Middle East. Rising operating expenses significantly reduced the benefit of stronger revenue.

Chief Financial Officer Yuji Saito also pointed to weaker outbound tourism compared with the same period of the previous year. The combination of softer overseas travel demand from Japan and higher costs placed additional pressure on quarterly earnings.

Full-year target remains in place

Despite the weak start to the financial year, Japan Airlines is targeting net profit of $701.3 million for the year ending in March 2027.

Reaching that goal will depend on the development of fuel prices, demand in international markets and the airline’s ability to control costs during the remaining quarters.