23/27 - LCC

◎ This slide provides data about our LCC operations. The data here is the combined total for Peach Aviation and Vanilla Air. ◎ We are making progress in aircraft conversions and crew training to centralize operations under Peach. To this end, we have temporarily reduced our running ratio of resources to operations, resulting in first-half ASK lower than the same period in the prior fiscal year. At the same time, demand on Korea and Hong Kong routes has decreased, while competition for Taiwan routes has intensified. As a result, we recorded a 2.0 billion yen decrease year on year to 46.1 billion yen. ◎ However, yield management under a flexible pricing approach allowed us to maintain a high 86.9% load factor for the two companies combined. ◎ Moving forward, we intend to restructure our routes, while still maximizing the benefits of the centralization of operations. ◎ Please turn to page 38.