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Omicron virus forces Japan Airlines to downgrade its earnings guidance
April 19th 2022
Japan Airlines (JAL) has lowered its earnings forecast for its fiscal 2022 year due to the impact of the Omicron variant of COVID-19 on passenger demand. Read More » In a regulatory filing to the Tokyo Stock Exchange, the company said it now expected to report a net loss for the 12 months to March 31, 2022 of 177 billion yen (US$1.4 billion), compared with its previous full-year forecast of a 146 billion yen loss. JAL’s revenue forecast was lowered to 682 billion yen, from 766 billion yen previously. "In the fourth quarter, due to the spread of the Omicron variant, preventive measures were applied in many prefectures in Japan, which decreased domestic passenger demand significantly," JAL said. "Consequently, domestic passenger revenue was much smaller than our estimate. International passenger demand did not recover significantly despite the easing of border restrictions." JAL will report its full-year results on May 6. Last year, it posted a net loss of 287 billion yen on revenues of 481 billion yen.
