Japan's LCCs' financial and performance results in: how did they fare in their first year?

Japan's Peach Aviation has reported an operating loss of JPY900 million (USD10.8 million) in FY2012, its first full year of operations. At a negative 6.3% margin, this is a not unacceptable performance from such a young start-up. Peach intends to have a significant improvement in FY2013 by posting an unspecified profit. This is far better performance than AirAsia Japan, which recorded about USD33 million of losses. Jetstar Japan has not released financial results.

Peach's CASK, according to CAPA calculations, stands at USD10 cents - 31% lower than ANA but 29% higher than Skymark, although increasing scale and diminished start-up costs will see CASK reduce. A very approximate CASK calculation for AirAsia Japan suggests its CASK is higher at USD11.6 cents, which combined with lower yields and load factors underscores its difficulties that culminated with AirAsia pulling out. Peach has been the highest yielding of Japan's new LCCs, although understandably well below ANA and JAL. Of the LCCs, Peach has shown strong performance in on time and cancellation rates, critical in punctuality-minded Japan. Its utilisation rate is also the highest.