JAL posts $2.3b annual operating profit***

TOKYO, May 19 (AFP): Japan Airlines (JAL) said Wednesday that its annual operating profit reached $2.3 billion, more than a year after its spectacular collapse prompted a government bailout. JAL, which recently completed bankruptcy proceedings, said operating profit for the year to March stood at 188.4 billion yen, tripling an original target of 64 billion yen, a company statement said. Its annual sales reached 1.36 trillion yen, the brief statement said. JAL went bust in January 2010 with debts of about 2.32 trillion yen -- one of Japan's biggest-ever corporate failures. The company continued flying during a rehabilitation process that included massive job and route cuts, while under court protection. In addition to the reform measures, a higher yen contributed to the latest earnings, JAL officials told local media. JAL's financial estimates for fuel costs were higher than the actual fuel prices, allowing the company to post an operating profit significantly higher than its target, media reports said.