Japan Airlines hikes annual loss forecast
Wednesday, 29 April 2009
TOKYO, Apr 28 (AFP): Japan Airlines, Asia's largest carrier, said Tuesday it would post a net loss of about 63 billion yen (656 million dollars) for the past year to March, almost twice as much as expected.
Previously JAL had forecast an annual net loss of 34 billion yen.
It now expects an operating loss of 51 billion yen for the year, against a previous projection of a 37-billion-yen shortfall. The airline also lowered its revenue outlook to 1.95 trillion yen from 1.98 trillion.
JAL blamed the worse than expected performance on a "relentless" drop in global demand for air transportation.
"Premium travel out from Japan slid against the backdrop of continuous cost-cutting measures by companies in this economic situation," it said.
While a stronger yen encouraged more Japanese tourists to fly overseas, it also resulted in fewer visitors coming to Japan, the carrier said.
JAL is suspending or reducing flights and switching to smaller planes in an effort to ride out the industry crisis.
The carrier has shed thousands of jobs and scrapped unprofitable routes in recent years in an attempt to revive its flagging fortunes.
The company is reportedly seeking two billion dollars in emergency government loans to shore up its finances amid the global economic downturn.
JAL is due to release its final results early next month.
Previously JAL had forecast an annual net loss of 34 billion yen.
It now expects an operating loss of 51 billion yen for the year, against a previous projection of a 37-billion-yen shortfall. The airline also lowered its revenue outlook to 1.95 trillion yen from 1.98 trillion.
JAL blamed the worse than expected performance on a "relentless" drop in global demand for air transportation.
"Premium travel out from Japan slid against the backdrop of continuous cost-cutting measures by companies in this economic situation," it said.
While a stronger yen encouraged more Japanese tourists to fly overseas, it also resulted in fewer visitors coming to Japan, the carrier said.
JAL is suspending or reducing flights and switching to smaller planes in an effort to ride out the industry crisis.
The carrier has shed thousands of jobs and scrapped unprofitable routes in recent years in an attempt to revive its flagging fortunes.
The company is reportedly seeking two billion dollars in emergency government loans to shore up its finances amid the global economic downturn.
JAL is due to release its final results early next month.