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Wednesday, February 6, 2013

JAL 9-month profit down slightly; confident despite 787 grounding

Japan Airlines (JAL) reported a net profit of ¥140.6 billion ($1.52 billion) for the first nine months of its fiscal year (April-December 2012), down 3.7% from net income of ¥146 billion in the prior-year period.
But JAL raised its forecast for its full fiscal year ending March 31 to a net profit of ¥163 billion from ¥140 billion previously predicted, even though it projected about ¥700 million ($7.5 million) in lost revenue in the January-March quarter owing to the grounding of the Boeing 787. JAL had seven 787s in service when the grounding was initiated Jan. 16.
“While there are concerns of the impact of the suspended use of the Boeing 787 aircraft since January 2013, business has been robust, especially on European, North American and Southeast Asian routes,” JAL said in a statement. “Various measures including new products and services, which were steadily promoted, are also expected to uplift revenue.”
For the April-December period, JAL generated revenue of ¥942 billion, up 3.6% year-over-year, while expenses increased 4.9% to ¥747.4 billion. Operating income was ¥158.1 billion, down 2.2%.
JAL said Tokyo Narita-Helsinki service, which it had planned to launch Feb. 25, has been postponed owing to the Dreamliner grounding.


atwonline.com

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