16/26 - 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 18.9 billion yen. There was significant impact from a decline in overseas sales revenues due to yen appreciation and a decrease in fuel surcharge revenues due to a decline in the crude oil price. ◎Revenue from Vanilla Air, which is recorded under “Other Revenues”, was largely unchanged from the previous fiscal 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 8.5 billion yen decrease for the amount recorded during the first half of the previous year. ◎Operating expenses decreased by 22.5 billion yen. Operation-linked costs increased due to the expansion of business scope, however fuel expenses decreased significantly. ◎As a result, operating income increased by 3.6 billion yen year on year to 84.7 billion yen. ◎From this fiscal year, we have focused on confirming transitions in unit costs while reinforcing cost management. As indicated in the chart below, first half results are in line with the original plan. ◎Please turn to page 18.