JAL posts profits in first half

JAL posts profits in first half

The JAL Group (JAL) has reported an operating profit of JPY106.1 billion (US$1.3 billion)from JPY599.8 billion in operating revenue and a net profit of JPY97.4 billion for the first half of FY2011. This represents an improved financial performance compared to a year earlier. Management successfully increased business productivity following a significant restructuring programme which saw the withdrawal of unprofitable routes, continuous review of the Group’s route network and fleet, reductions in fuel expenses and other fixed costs, as well as the introduction of a new revenue management system.

Performance through this period was severely affected by the earthquakes in March. Capacity on international routes was cut by 28.2% and demand fell 34.9% compared to the same period last year while the overall load factor is 7.0 percentage points down to 68.0%. The drop in demand on domestic routes was easier at 22.7%. Set against a capacity cut of 23%, load factors actually rose 0.2 points to 62.5%.

Mark Elliott
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Mark Elliott
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