2/26 ■Ⅰ. Financial Results for the Six Months ended September 30, 2016 《Outline》
◎This is an outline of our financial results for the second quarter of fiscal 2016. ◎In the Air Transportation business, even as we are continuing with the expansion of our international network, passenger demand remained firm during the second quarter. However, a drop in fuel surcharge revenues and yen appreciation resulting in a decline in yen conversion amounts for foreign currency revenues in the International Passenger Business, led to decrease in consolidated revenues year on year. ◎On the other hand, we continued to control cost increases and conduct cost management as we progressed with business expansion in addition to the impact of a decline in crude oil prices and yen appreciation. As a result, operating income increased by 2.7 billion yen year on year to 89.5 billion yen and, despite a decrease in revenues, we recorded an increase in profit. ◎The graph on the right shows transitions in first half operating income and operating income margins for the past three years. We achieved a record high operating income for the first six months and our operating income margin surpassed 10%. ◎Our financial results for the second quarter will be explained in detail during Part 2. ◎Please turn to page 5.