![Peach Aviation to Aggressively Expand into Southeast Asia with the Launch of Singapore Route Using A321LR: ‘Many More Candidates Available’ Peach Aviation to Aggressively Expand into Southeast Asia with the Launch of Singapore Route Using A321LR: ‘Many More Candidates Available’](https://www.traicy.com/wp-content/uploads/2024/09/DSC_4482.jpeg)
Peach Aviation to Aggressively Expand into Southeast Asia with the Launch of Singapore Route Using A321LR: ‘Many More Candidates Available’
The JAL Group has formulated its Mid-term Management Plan Rolling Plan 2024.
Based on the forecast of domestic and international passenger and cargo demand, the financial profit before income taxes (EBIT) for fiscal year 2023 is revised upwards to ¥140 billion, for 2024 to ¥170 billion, and for 2025 to ¥200 billion.
For full-service carriers, the strategy involves strengthening competitiveness and maintaining unit prices for international passengers, capturing inbound demand, enhancing profitability for domestic passengers, and attracting tourists to regions. For cargo mail, the plan includes profit structure reorganization through the introduction of freighter aircraft and maintaining or improving unit prices by transporting strategic goods such as pharmaceuticals. The group expects profit growth through the expansion of the low-cost carrier (LCC) business scale, aggressive international flight expansion, and the enlargement of the Mile-Life-Infrastructure business.
Compared to the fiscal year 2019, unit prices in 2025 are expected to increase by 70% for international passengers and incrementally by 20% for domestic passengers. Passenger numbers are projected to fall short of pre-coronavirus levels, with international passengers at 76% and domestic passengers at 94% by fiscal year 2024.
The group plans to increase posts in performance-based compensation systems, abolish seniority-based salary systems, expand early career advancement systems for younger employees, set career hiring at 50% of hiring ratios, and broaden the scope of the highly skilled professional system. By fiscal year 2025, sales per employee and employee returns are expected to expand by 38% and 15%, respectively, compared to fiscal year 2019.
To accelerate ESG strategy and enhance competitiveness, investments in fuel-efficient aircraft will continue with ¥310 billion planned for fiscal year 2024 and ¥240 billion for 2025. A payout ratio of 35% is planned for fiscal year 2024.