JAL almost doubles losses
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The JAL Group has nearly doubled its predicted losses for the fiscal full-year 2008, ending 31 March 2009. In a revision in its consolidated financial forecast, the Japanese national carrier increased its loss estimates to JPY63 billion (US$651 million), from the JPY34 billion predicted in February 2009. Forecast operating revenue for the year was adjusted down by JPY27 billion, to JPY1.95 trillion.
The carrier said that the “relentless” decline in global air transport demand had taken a toll on international and domestic passenger revenue as well as international cargo revenue. Premium travel out from Japan slid against the backdrop of continuous cost-cutting measures by companies. Despite the pick up in outbound leisure demand from Japan, the strong yen eroded both business and leisure demand from overseas, resulting in an overall drop in the operating revenue from international passengers. On the domestic front, JAL faced a decrease in the yield of individual travellers and in group passenger volume.
JAL highlighted its cost-cutting measures, which were brought forward from the original start date of FY2009. This urgency has led to a further decrease in operating expenses by JPY13 billion, cushioning to a degree the decrease in overall operating income.
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