10/16 - Changes in Op. Income

◎This is a year-on-year comparison of changes in operating income for our Air Transportation business. ◎Operating revenues decreased by 6.3 billion yen. Revenues from our International Passenger business increased while Domestic Passenger and Cargo and Mail decreased. Revenues from the LCC business, which are reported under “Other Revenues”, were largely unchanged from the previous year. ◎With the abolishment of the International Cargo Agency Commission, the expense of this commission is offset by revenues from this fiscal year. This resulted in an approximate 4 billion yen decrease for the amount recorded during the same quarter of the previous year. ◎Operating expenses decreased by 3.6 billion yen. Fuel expenses decreased significantly due to a drop in the crude oil market. However, operation-linked costs such as contracts increased compared to the previous fiscal year. ◎As a result, operating income decreased by 2.6 billion yen year-on-year to 12.6 billion yen. ◎Please turn to page 12.