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Japan Airlines forecasts US$1.28 billion loss for fiscal 2021
November 3rd 2021
Japan Airlines Group (JAL) has predicted earnings are on the road to recovery after narrowing its interim operating loss. Read More » The airline recorded a consolidated net loss for the six months to September 30 of 104.9 billion yen (US$920.2 million), down from 161.2 billion yen in the same period a year ago. The company said the prolonged outbreak of COVID-19 continued to limit international passenger demand, although there was a slow recovery in the domestic market. While passenger demand “remained tough”, air cargo demand continued to be strong. It said it responded to the increased demand by reducing capacity to minimize operating costs and cutting fixed costs by bringing outsourced operations in-house, reducing IT expenditure and cutting personnel costs, including executive salaries and employee bonuses. The airline is forecasting revenue will rise from 481.2 billion yen in 2020 to 766 billion yen for full-year fiscal 2021 and that its losses will narrow from 2020’s 286.6 billion yen to 146 billion yen. JAL forecast international passenger numbers will increase gradually as border restrictions ease and that domestic passengers will “increase steadily along with vaccination”. Cargo demand is expected to remain strong throughout the fiscal year.
