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Japan Airlines racked up a 38.5 billion yen ($423 million) loss for the fiscal third quarter as business travel and cargo traffic plummeted, battered by a global downturn. The nation’s top airline, also known as JAL Group, Friday forecast a 34 billion yen loss for the fiscal year through March, a reversal from its November projection of a 13 billion yen profit. The carrier made 16.9 billion yen profit in the previous fiscal year.
Sales for October-December sank 13 percent from a year earlier to 485.7 billion yen. Travel for domestic passengers was flat for the period, but sank for international passengers and international cargo, the company said.
Japan Airlines said it will continue with turnaround efforts, such as job cuts, more fuel-efficient aircraft and a focus on business travelers. But it acknowledged hard times were likely to continue.
“With business confidence falling and demand expected to drop far more than originally expected, the pressure to increase profitability, focus more on cost reduction and increase productivity levels will intensify,” it said in a statement.
Japan Airlines said the surge in fuel prices had hurt results, especially in the first half. Even with the appreciation of the yen, fuel costs rose by 107.4 billion yen to 414.5 billion yen for the first nine months of the fiscal year, compared to the same period the previous year.
Tatiana is the news co-ordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes to monitor the hundrends of news sources of TravelDailyNews Media Network and skim the most important according to our strategy. She holds a Bachelor degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
