Annual Report 2006 - JAL | JAPAN AIRLINES

Cargo OperationsDriven by the expanding world economy, our cargo operations were generally favorable.However, as business was exceptionally brisk in the previous period, revenue cargo tonkilometersdipped by 3%.OVERVIEW OF BUSINESS OPERATIONSIN THE REPORTING TERMRoute operationsWe increased the number of fl ights on trans-Pacifi c routes androutes to Hong Kong during the busy season in the second half.In addition, starting in November 2005, we utilized new Boeing747-400 Freighter and converted some of the return fl ightsfrom Europe, which had previously stopped over at Anchorage,into direct fl ights, thereby improving our services with shorterfl ight time and reducing costs, including fuel costs.MarketingSince early autumn of 2005, in addition to expanded exportsof fl at-panel TVs and semiconductor-devices, and shipmentsof auto parts by Japanese manufacturers have increased.Although imports of fresh food were weak, imports of autoparts and materials were steady.Our total cargo transportation volume fell 3.0% from theprevious fi scal year, to 4,541.29 million tonne-kilometers, butcargo yield increased 8.6%, mainly due to increases in fuelsurcharges, and revenue increased 5.4%, to ¥180.5 billion.FUTURE DEVELOPMENT AND STRATEGY:MEDIUM-TERM MANAGEMENT PLANThe Group will strive to expand cargo operation while securingstable profi tability by building an effi cient operational base thatutilizes a combination of large-and medium-sized aircraft. Weplan to aggressively develop potential growth markets, suchas China, while servicing the demands of our most importantmarket, the Japan outbound international cargo market,through such measures as strategic alliances with freightforwarders. We are seeking to develop growth opportunitiesthat include the logistic business, express delivery business anddomestic night cargo fl ight market.18