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JAL cuts profit forecast more than 40%

17 Comments
By CHARLY TRIBALLEAU

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17 Comments
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It looks like those two planes are getting ready to throw down.

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"We cancelled and reduced flights and we also used smaller planes, but these efforts didn't make up for the losses," the firm said in a statement.

Yet kept all charges high and climbing on overpriced excuses. Bring your prices down, give us your customers no charge for 2nd baggage since the oil prices are down significantly therefor fuel costs are down and you need a new excuse, then perhaps you can get business back.

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Still making a PROFIT! That can go towards paying staff, or save it for the inevitable rainy day.

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JAL will collapse once again, and the government will bail it out.

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@rgcivilian1:

No - the opposite will happen. Be careful what you wish for. By the time this over, the LCC's will have mostly gone, and we will be left with the legacy carriers. IF - and this is quite possible according to the IATA social distancing is enacted on planes legally - then the days of cheap travel are well and truly over.

The enviroment mob will be over the moon - but for the rest of us we are going back to the days of fixed fares, average service as there will be little or no competition.

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How are they still able to make profit in this climate?

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Because this reporting period will be April 2019-March 2020.

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@theResident: be careful of what you wish for: but for the rest of us we are going back to the days of fixed fares, average service as there will be little or no competition.

I dont' know what rock you have been under but monopoly is alive and well in Japan. There already has been fixed fares, avg service and little to no competition. Why? Price fixed business culture. People do not voice their real opinion and just keep silent expecting someone else to do it for them. The excuse the airlines used was fuel costs: well in case no one has notice fuel costs is not a reason to hide behind at the moment, and forget social distancing on an airline carrier. Better if a test within 1 day prior to departure is given where it involves a blood test, then truly one can rule out positively cleared and be allowed to fly.

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If they can still make profit, the margins must be pretty good...

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@rgcivilian1: So - the proliferation of airlines like AirDo, Starflyer, Vanilla, Peach, Jetstar has passed you by has it? And as for fuel costs - the airlines (and other heavy using oil industries) hedge their fuel purchases months in advance hence oil going technically negative on one exchange this week as no one needs it! Its been ages since we had to pay fuel surcharges and in real terms airfares haven't risen in 30 years - if anything they are lower. I do agree with you, social distancing is unlikely but without a reliable antigen test , even if it was required a lot of people simply will opt not to fly anyway driving fares higher. Without passengers - less seat count, less revenue, higher fares. There are a lot of people like you who excpect more, for less. Thats not good business, You can seriously forget lower fares .

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If you look in the skies above Tokyo and Chiba there are hardly any planes in the sky.

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Profit forecast reduced 40%? I am surprised any airlines are making any profit at all.

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How abt Ana ???. Why only Jal ???. Ana, what is Ana going to report ???.

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all, their reporting period for financial year 2019 is April 2019-March 2020. the full effects of travel ban will bite in the financial year 2020 that just began this month. expect both airlines to give vastly reduced profit forecasts for FY2020.

I also expect that the LCCs and heavily debted (lots of plane leases/bloated workforces) legacy airlines will be the first to fold. Japan will likely end up with JAL/ANA as the only independent airlines standing by the time this pandemic is done. (this includes both airlines' subsidiaries and child LCCs such as Peach and Skymark). The independent LCCs will surely fold.

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ANA also reporting later this month.

It's end of the year TARA TAN - time for listed companies to report.

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 then the days of cheap travel are well and truly over.

I call it the "China Tax."

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