◎ I will start with a summary of financial results for the six months ended September 30, 2019.
◎ Our mainstay Air Transportation Business captured demand steadily during the period, mainly during the 10-day Golden Week holiday in Japan. The weakening business climate due to U.S.-China trade friction, as well as the impact of Japan-Korea relations and demonstrations in Hong Kong, were factors contributing to a decline in cargo demand. In addition, we saw sluggishness in certain segments of demand for business demand on international routes. Despite these headwinds, operating revenues rose 1.7% year on year to 1,055.9 billion yen.
◎ We incurred expenses in advance for business growth for next fiscal year and beyond, which contributed to a 4.7% increase in operating expenses compared to the prior fiscal year, rising to 977.1 billion yen.
◎ As a result, operating income amounted to 78.8 billion yen, which was a 25% decrease year on year.
◎ Please turn to page 5.