Japan Air sees light at the end of tunnel
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The Tokyo-based airline’s net loss was 4.29 billion yen (US$36.5mil) in the three months ended June 30, compared with a loss of 26.8 billion yen a year earlier, it said in a statement.
Japan Air forecast its first profit in three years this fiscal year as the airline cuts staff and operating costs, IHT reported.
Growing business travel to China and South-East Asia boosted income from flying. The airline is stopping less profitable routes and cutting stakes in other companies to focus on air travel.
Japan Air cut 1,600 jobs in the latest fiscal year and has said it will eliminate 700 more by April. The job cuts are part of a plan to reduce the airline’s work force by 4,300, or 8 percent, by March 2009. Japan Air had 51,497 workers at the end of March.
JAL’s overseas passenger traffic declined 3.1 percent, while the number of domestic passengers declined 3.3 percent. But fuel surcharges and the rise in the share of business travel lifted revenue in both segments, reports said.
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