Japan Airlines targets a quicker return to profitability

Japan Airlines (JAL) has accelerated its medium-term management plan and targets a return to FY19 profit levels already this year, one year earlier than outlined last year in the 2022-2025 strategy. The airline also puts Environmental, Social, and Governance (ESG) at the core of the updated plan, JAL said on May 6 at the presentation of its FY21 results. Japan Airlines targets a quicker return to profitability.

The medium-term plan is a stepping stone toward JAL Vision 2030, a key ingredient to transform the Japanese carrier into a net-zero, sustainable, safe, social, and profitable airline by 2050. As the Covid-crisis lasts longer than expected and geopolitical issues (notably the war in Ukraine) destabilize the world and economy, JAL has seen the need to update the plan presented exactly a year ago.

It also notes that the pandemic has changed travel habits, with more people working at home, and has given a huge boost to e-commerce, while the public debate on corporate values and sustainability has changed.

For this reason, JAL puts ESG at the core of the revised plan. On the environmental side, JAL is now more committed to realizing a stable procurement of sustainable aviation fuels (SAFs), including joint procurement within the oneWorld alliance. Increasing SAF production and developing new e-fuels in Japan have also been added to the plan. This will take a lot of effort, as JAL acknowledges that a huge step in SAF production needs to be made before its meets the target of using ten percent of the fuels in 2030. Still, it wants to accelerate to make sure that the goals for 2030 are met.