business

JAL forecasts Y63 bil net loss

7 Comments

Japan Airlines, Asia's largest carrier, said Tuesday it would post a net loss of about 63 billion yen for the past year to March, almost twice as much as expected. Previously JAL had forecast an annual net loss of 34 billion yen.

It now expects an operating loss of 51 billion yen for the year, against a previous projection of a 37 billion yen shortfall. The airline also lowered its revenue outlook to 1.95 trillion yen from 1.98 trillion.

JAL blamed the worse than expected performance on a "relentless" drop in global demand for air transportation. "Premium travel out from Japan slid against the backdrop of continuous cost-cutting measures by companies in this economic situation," it said.

While a stronger yen encouraged more Japanese tourists to fly overseas, it also resulted in fewer visitors coming to Japan, the carrier said.

JAL is suspending or reducing flights and switching to smaller planes in an effort to ride out the industry crisis.

The carrier has shed thousands of jobs and scrapped unprofitable routes in recent years in an attempt to revive its flagging fortunes.

JAL is due to release its final results early next month.

© Wire reports

©2023 GPlusMedia Inc.

7 Comments
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JPY63bn is about USD630m, I wonder how much of their hedging losses were reported through the profit and loss accounts and how much went straight to the hedging reserve and therefore was hidden from their bottom line.....

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Time foe ANA and JAL to merge and the government to promote tourism.

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"The carrier has shed thousands of jobs"

And they're still losing 63 billion. Incredible.

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JAL is one of the largest operators of 747's in the world. A fully loaded 747 has a huge potential for profit. A 747 will a lot of empty seats has a huge potential for loss.

As far as tourism, that's not enough to keep the airlines afloat. 40% of an airlines customers (business travelers) make up 60% of revenue. Usually much higher profit revenue compared to tourists.

The top three international airlines in Japan are JAL, ANA and then Northwest Airlines. What JAL has going for it is NWA was bought by Delta and Delta fired the Asian VP of international ops. Delta has Zero brand in Asia, and is yanking the NWA brand with little thought of how they are going to build up the Delta brand.

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When I fly JAL, it is always full, and the fuel charge is extra. Where does the dosh go?

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Last time I flew NRT-ORD the plane was maybe half full. JL also has sizable Business and First class cabins which appear not loading well either. As far as your fuel surcharge, just because oil prices went down doesn't mean JAL hedged fuel correctly and is paying market.

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Wasn't this the perfect company only last month? Western airlines need to learn from JAL they said on this very site.

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