22/26 - Domestic Passenger Operations

◎This slide provides data for our domestic passenger operations. ◎The chart on the left shows a net 2.0 billion yen in change factors that resulted in cumulative revenue growth through the third quarter. ◎The impact of natural disasters, planned flight cancellations, and other events taking place mainly in the second quarter had a negative impact of 1.0 billion yen on revenues. At the same time, unit price factors, including capturing demand for products with higher unit prices, resulted in a positive impact of 3.0 billion yen. ◎More recently, we have experienced solid business travel demand, while seeing a recovery in demand for Hokkaido-bound flights, which was a concern in the wake of the Hokkaido earthquake. In October of last year, we adopted a new fare system, allowing us to improve yield management to levels greater than in the past. ◎Non-cumulative third quarter passengers and unit prices show improvement compared with the previous year. This shows the effects of implementing flexible fares in response to reservation trends. ◎Please turn to page 28.