News
Japan Airlines reports US$2.6 billion annual loss; commits to LCC expansion
May 7th 2021
Japan Airlines (JAL) today reported a net loss of 286.7 billion yen (US$2.6 billion) for the 12 months to March 31, 2021, slumping into the red from a net profit of 48.1 billion yen a year earlier. Read More » Revenue was down 65.3%, to 481.2 billion yen, JAL said in a regulatory filing. The airline group described fiscal 2021 as an "extremely tough year" as it battled the impact of the pandemic. There had been some signs of recovery in the second half of the year, JAL said, but conditions continued to be difficult with COVID-19 dominating the group’s outlook. "At present, it is difficult to foresee the recovery of demand while the global spread of COVID-19 shows no sign of slowdown," JAL said in its financial results. The company did not provide earnings guidance for the current fiscal year.
JAL's medium-term business plan, published alongside its financial results, said the company would strengthen cooperation between ZIPAIR, Jetstar Japan and Spring Air Japan to meet expected steady growth in the low-cost carrier market. The airline group confirmed media reports it would increase its equity in Spring Air Japan to capture inbound demand from China. "We plan to make Spring Air Japan a consolidated subsidiary in June to realize high quality and low-cost services by taking advantage of the scale merits of the JAL Group," JAL said.
