150 pages(For browsing)[17.40 MB : PDF]

FLY INTO TOMORROW

JAL REPORT 2021

The fiscal year ended March 31, 2021

Foreword	JAL Group Corporate Policy Table of Contents Message from the President

The JAL Group adopts the Corporate Policy as its universal management goal and management rationale, and established the Safety Charter as the Group's safety policy based on the Corporate Policy.

The JAL Group also established the JAL Philosophy as a mindset, values and attitude expected of all Group employees, with the hope that application of this Philosophy will lead to realization of the Corporate Policy.

The JAL Group Will:

Pursue the material and intellectual growth of all our employees;

• Deliver unparalleled service to our customers;
• Increase corporate value and contribute to the betterment of society.

Safety Charter

Safety: The protection of lives.

This is the commitment and basic foundation of business continuity for the JAL Group.

We take to heart our mission and responsibility as safety professionals to ensure a safe operation on every flight with the best of our knowledge, skills and abilities.

JAL Philosophy

Part 1 In Order to Lead a Wonderful Life

Chapter 1 The Formula for Success

(The Formula for Life and Work)

The Result of Life and Work

= Attitude × Effort × Ability

Chapter 2 Have the Right Attitude

Base Criteria for Decision-Making on "Doing What Is Right as a Human Being"

Have a Beautiful Mind

Be Humble and Honest

Always Be Cheerful and Positive

A Small Good Is Like a Great Evil, While a Great Good May Appear Merciless

Wrestle in the Center of the Ring Grasp Matters Simply

Possess Opposing Extremes

Chapter 3 Accumulate Tedious Efforts with Passion

Work Earnestly

Accumulate Tedious Efforts

Work with Voluntary Attention

Fire Yourself Up

Strive for Perfection

Chapter 4 Ability Will Improve

Ability Will Improve

To accomplish this, we will act according to the following principles.

• Stop immediately when safety concern arises.
• Comply with rules and strictly follow standard operating procedures.
• Always check and confirm; never rely on assumptions.
• Promptly communicate information without omission to ensure safety.
• Deal with problems quickly and appropriately without underestimation.

Part 2 To Become a Wonderful JAL

Chapter 1 Each of Us Makes JAL What It Is

Each of Us Makes JAL What It Is

Discuss Frankly

Lead by Example

Be the Center of the Vortex

Valuable Lives Are Entrusted to Us in Our Work

Be Thankful

Put Yourself in the Customer's Position

Chapter 2 Have a Keen Sense of Profitability

Maximize Revenues and Minimize Expenses

Elevate Our Cost-Consciousness

Pursue Profit Fairly

Manage the Company Based on Accurate Figures

Chapter 3 Unite Our Hearts

Make the Best Baton Pass

Align Mental Vectors

"Workfloor" Management

Follow the Merit System

Chapter 4 Possess a Fighting Spirit

Maintain an Ardent Desire

Never Give Up Until We Succeed

Boast and Make It Come True

Possess True Courage

Chapter 5 Be Creative in Our Work

Today Should Be Better Than Yesterday, Tomorrow

Better Than Today

Conceive Optimistically, Plan Pessimistically, and

Execute Optimistically

Think Through to Visualize the Results

Decide and Act with Speed

Face Challenges with Courage

Aim High

Foreword

Story Creation Value Group JAL The

Plan Management Term Medium

Book Data

• JAL REPORT 2021

JAL REPORT 2021

2

Foreword	JAL Group Corporate Policy Table of Contents Message from the President

JAL Group Information System

Table of Contents

Editorial Policy

In addition to this report, detailed information is available on our corporate website and various booklets for stakeholders.

Foreword

JAL Group Corporate Policy	1
Table of Contents	3
Editorial Policy	3
JAL Group Information System	4
Message from the President	5

Chapter 1: The JAL Group Value Creation Story

The Value Creation Process	11
70 Years of Challenge and Innovation	13
JAL Group's Strengths	15
Foundation for Value Creation / Safety Charter	16
/ JAL Philosophy	19
/ Divisional Profitability Management System	19
/ JAL Group Code of Conduct	20
/ Corporate Governance	21

Chapter 2: Medium Term Management Plan

Management Strategy	36
Environmental Awareness	36
Strategic Overview	37
Timeline	38
Management Targets	39
Business Strategy	40
Air Passenger Business	43
Cargo and Mail Business	51
Mileage, Lifestyle and Infrastructure Business	53
Safety and Comfort	59
Human Resources Strategy	61
Digital and IT Strategy	63
Finance Strategy	65
Rebuilding the Financial Foundation	66
Shareholder Returns and Growth Investment	67
Cost Management	68
Investment Strategy	69
ESG Strategy	71
Environment	75
People	87
Communities	97
Governance	103

Chapter 3: Data Book

Data Highlights	119
Business Data	121
Financial Data	127
ESG Data	146
Company/Stock Information	150

The JAL Group has published this JAL REPORT 2021 to inform stakeholders about our business activity outcomes in the previous financial year, our strategies for the future, and to provide an understanding of the Group's pursuit of social value along with economic value, and sustainable growth. This report has been collated from a wide range of both financial and non- financial information that the JAL Group has deemed to be of particular importance to Group management, all of which is made available on the Group's website.

Period covered by the report

Primarily April 2020 to March 2021 (FY2020)

Scope of the report

This report covers 131 JAL Group companies, comprising Japan Airlines Co., Ltd., 79 subsidiaries and 51 affiliates.

Reference guidelines

The International Integrated Reporting Framework issued by the International Integrated Reporting Council (IIRC) and the Guidance for Collaborative Value Creation issued by the Ministry of Economy, Trade and Industry were used as reference in preparing this report. The GRI Standard issued by the Global Reporting Initiative (GRI) was used as reference for ESG information.

Date of publication

September 2021

JAL corporate website

www.jal.com/en/

Offers a comprehensive insight into JAL Group's business approach, activities in general, IR (Investor Relations) information and sustainability information.

Regarding statements about the future outlook

This report includes statements about the future outlook of JAL Group businesses and forecasts. These statements reflect current JAL Group analysis related to existing information and various trends. Actual results may differ from the forecasts due to business risks and uncertainties.

Regarding products, services, events, etc.

Some of the products, services, events, etc. contained in this report have been suspended due to extenuating circumstances.

For the latest information, please refer to sources such as JAL corporate website.

Regarding the photos included

In some of the photos in this report, masks are not worn however masks were only removed for the purposes of the photograph.

	JAL REPORT 2021	You can learn about…
P.1	JAL Group Corporate Policy・	Corporate Policy and management vision
	Safety Charter
	as the basis of management decisions.
	JAL Philosophy
P.5 Message from the President
P.11 The Value Creation Process
P.13	70 Years of Challenge and	The strengths and foundations
	Innovation
	of JAL's competitive advantage.
P.15	JAL Group's Strengths
P.16 Foundation for Value Creation
		The corporate governance system,
P.21	Corporate Governance	the foundation for corporate value
		enhancement over the medium- to long-term.
P.36	Environmental Awareness	The business environment
(risks and opportunities).
P.37	Strategic Overview
P.38	Timeline	The growth strategies
P.39	Management Targets	for each business.
P.40	Business Strategy
		The human resource and intellectual
P.61	Human Resources Strategy	property strategies
P.63	Digital and IT Strategy	that are the essential to increasing
		corporate value.
P.65	Finance Strategy	The finance strategy
in the post COVID-19 era.
P.71	ESG Strategy	The initiatives
to create a sustainable future.
P.113	Major External Ratings
	Major Sustainability Initiatives
	and Results to Date	The indicators for measuring success
P.119	Data Highlights
of JAL's initiatives and the results.
P.121	Business Data
P.127	Financial Data
P.146	ESG Data

your information media.

JAL corporate website

	The following detailed information is also
	posted on the JAL corporate website.
Profile	・JAL Group Corporate Policy
・PolicyCompany	・JAL Philosophy
・Medium Term Management Plan
	・Company Profile
	・History
Corporate	・Corporate Governance
・Organizational Overview
	https://www.jal.com/en/outline/
Quality	・Safety Management
and	・Efforts to realize a safe and secure society
・Commitments to ensure outstanding quality
Safety	https://www.jal.com/en/flight/
	・Sustainability Management
Sustainability
・Integrated report/ESG Data
	・Initiatives of the JAL Group's Sustainability
	・JAL Group Actions to Achieve SDGs
	https://www.jal.com/en/sustainability/
	・About JAL Group
Relations
・Stock Information
	・IR Library
Investor	・Financial Highlights
・Monthly Traffic Data
	https://www.jal.com/en/investor/

Others

・JAL Group Safety Report

https://www.jal.com/en/flight/report/

・Corporate Governance Report

https://www.jal.com/en/outline/governance/

・Consolidated Financial Statements

https://www.jal.com/en/investor/library/group.html

・Consolidated Financial Results

https://www.jal.com/en/investor/library/information/

Foreword

Story Creation Value Group JAL The

Plan Management Term Medium

Book Data

• JAL REPORT 2021

JAL REPORT 2021

4

Foreword	JAL Group Corporate Policy Table of Contents Message from the President

We aim to be "the world's most preferred and valued airline group" with "Safety and Comfort" and "Sustainability" as the engines of growth.

Foreword

First and foremost, I would like to express my heartfelt sympathy to those affected by the novel coronavirus (COVID-19) and their families and my deepest respect and gratitude to all the healthcare professionals and others working to protect human lives and bring the situation under control.

Since last year, the COVID-19 pandemic has had a tremendous impact on many industries including the aviation industry, and we were not an exception. Our company is facing an extremely difficult situation, and I express my sincerest appreciation to our customers and stakeholders for your tremendous support and kindness.

Amid an uncertain business environment, the JAL Group formulated a new Medium Term Management Plan in order to overcome the current crisis and make steady progress toward the future. We will endeavor to achieve sustainable growth and development and increase corporate value in the post COVID-19 era through the execution of our business strategy, finance strategy and ESG strategy as the pillars of strategic management.

This year marks the 70th anniversary of the foundation of the JAL Group. Given the dramatic shifts to values in these changing times brought about by the pandemic, we will make concerted efforts to become "the world's most preferred and valued airline group" by leveraging the strengths we have cultivated to date with a focus on "Safety and Comfort" and "Sustainability" as the engines of growth. We look forward to your continued support and patronage.

September 2021

AKASAKA Yuji

Representative Director, President

• JAL REPORT 2021

Foreword

Story Creation Value Group JAL The

Plan Management Term Medium

Book Data

JAL REPORT 2021

6

Foreword	JAL Group Corporate Policy Table of Contents Message from the President

Spearheading solutions to social issues and reforms through ESG strategy as our strongest growth strategy

Facing dramatic environmental shifts without precedent

Driven by this strong aspiration, we announced

"JAL Vision 2030," which defines where the JAL Group wants to be in 2030, and set the goals of creating

"a safe and secure society" and "a sustainable future" in the Medium Term Management Plan, which was announced in May.

While the movement of people posed risks in the pandemic situation, we reaffirmed the importance of meeting people in person and the value of movement, since some things cannot be done without movement. We need to get back to a world where people and goods can move safely and freely.

This may be too big a challenge for one airline to handle. However, the sustainable growth of the JAL Group can only materialize in a society and future such as this. I feel that the pursuit of a sustainable society through business activities driven by ESG strategies will create new business opportunities, and we should not miss out on that chance.

In particular, addressing climate change is a pressing social issue for airlines, which emit huge amounts of CO2 in daily operations. With this in mind, we announced our commitment to achieve net zero carbon emissions by 2050 at the June 2020 General Meeting of Shareholders.

Advances in aviation technology have replaced four-engine aircraft with long-haultwin-engine aircraft and nearly halved the amount of fuel consumption over the past 30 years. Likewise, continued efforts by manufacturers and airlines to develop cutting-edge aircraft through further technological advances should lead to huge reductions in fuel consumption and carbon emissions.

The question is how net zero emissions can be achieved. The answer is building a supply chain for the development and production of environmentally-friendly alternative and synthetic fuels through long-term cooperation with many partners. I would like to see the JAL Group play a central role in making big waves that swell to form new initiatives.

Foreword

Story Creation Value Group JAL The

Term Medium

Fiscal 2020 was a turbulent year of rapid changes in the business environment brought about by the spread of COVID-19. We were forced to steer through difficult waters in maintaining essential air transport

transformation is drastically changing private lives and we are bound to see huge changes in society in the future. Based on these perceptions of the business environment, I strongly felt a sense of crisis that we will fall behind the

The JAL Group will focus on the key themes of "Safety and Comfort" and "Sustainability" as growth engines; amid a time of upheaval with drastic changes in values toward travel.

Plan Management

networks and transporting healthcare workers and medical supplies, while reducing flights to the extent possible to control the movement of people. We also did everything possible to stop negative cash flows and

ensure employment security to all our employees

through intensive cost reduction and investment control.

On the other hand, I was sure the pandemic would generate far-reachingand unprecedented changes in the environment. Experiencing the pandemic, a crisis that confronted humanity, has sharpened awareness

times if conventional thinking remained unchanged. To overcome the current crisis and facing the urgent need to

implement financial and business structure reforms, we have redefined the vision of what the JAL Group aspires to be in the future.

The JAL Group's reason for being is to contribute to the betterment and development of society through air transportation as social infrastructure and a community lifeline. This stance has not and will not change. I feel that it is our responsibility and mission to spearhead solutions

Safety and Comfort

Realize a safe, secure,

and reliable society

in a comfortable

environment

JAL

Vision

2030

Sustainability

Realize an affluent society

where each one of us can sense and hope for a brighter future

Book Data

of global social issues such as risk exposure and the SDGs and has increased momentum to address these issues head-on. Furthermore, the acceleration of digital

to social issues and reforms and to stand at the forefront of driving initiatives in the coming era. For this purpose, we have set goals that are appropriate for this.

To become the world's most preferred and valued airline group,

where many people and goods lively move around.

• JAL REPORT 2021

JAL REPORT 2021

8