JAL turns profit March-June
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Japan Airlines (JAL) made an operating profit of JPY17.1 billion from total operating revenues of JPY254.9 billion, and a subsequent net profit of JPY12.7 billion in the first quarter of FY2011. The results mark a turnaround in the national carrier’s financial performance after an acute restructuring exercise last year. This involved cancelling unprofitable routes and downsizing the fleet to reduce operating expenses and raise efficiency. Enhancing the airlines flexibility to respond to fluctuating demand was an important element of the restructuring process. This proved especially important when demand for air travel crashed after the earthquake. Passenger traffic on international routes fell 40.2% yoy and 29% yoy on domestic routes during the three-month period. Suspending routes and reducing route capacity help alleviate operating losses.
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