JAL hits record $13.4bn revenue as tourist surge pays off

Japan Airlines closed the fiscal year ending March 2026 with the strongest numbers in its history since relisting, as a surge in tourists visiting Japan and a steady recovery in business travel combined to push every financial target the airline had set for itself over five years.

Revenue reached $13.4bn, up 9.1% year on year, while EBIT climbed 26.4% to $1.45bn and net profit rose 28.6% to $917mn. The EBIT margin of 10.8% cleared the 10% target JAL had been working toward since 2021. Return on invested capital and earnings per share both beat their benchmarks in the same year — a clean sweep the airline had never managed since returning to the stock exchange after its 2010 bankruptcy restructuring.

The engine was international travel. Passenger numbers on overseas routes rose 5.6% and revenue from those routes grew 9.1%, with Japan's popularity as a tourist destination, amplified by a weak yen making the country cheaper for foreign visitors. Cargo added to the picture, with international freight revenue jumping 21.3% on the back of rapidly growing Asia-to-North America demand.

Not every part of the business kept pace. JAL's low-cost carriers — ZIPAIR and SPRING JAPAN — grew revenue by 10.4% to $766mn but saw profits fall 17.1% to $64mn as both airlines expanded aggressively into new routes and hired ahead of demand.

The mood in the boardroom, however, is cautious. JAL beat its own forecasts by a clear margin yet held the annual dividend flat at $0.64 per share, citing uncertainty in the Middle East. For the year ahead, the airline guided EBIT down to $1.2bn and net profit down to $733mn — a 17% fall in operating profit despite slightly higher revenue. The reason is jet fuel. The Iran conflict has reset energy costs sharply higher, and JAL's coming fiscal year will be priced at those new levels throughout.

The airline is simultaneously pressing forward with a $1.33bn fundraise through bond-type class stock to back its Management Vision 2035, which targets EBIT of $2bn by 2030. That target was set before crude oil reached current levels. How quickly fuel markets stabilise will determine whether the ambition holds.