Japan Airlines (JAL) has posted a strong set of results for the first half of its 2013-14 financial year.
The company generated net profits of JPY81.9 billion (US$833 million) in the six months to 30 September 2013. And while this actually represented a 17.7% decline compared to the JPY99.7bn profits achieved in the same period last year, the company will nevertheless by pleased to have registered another strong performance, less than four years after it filed for bankruptcy protection.
JAL’s revenue actually increased 25.0% in the six-month period, to JPY634.2bn, driven by demand for international passenger services. Operating expenses all surged however, jumping 41.4% to JPY522.0bn.
“In international passenger operations, we took necessary action to expand our network and increase aircraft efficiency following the resumption of Boeing 787 operations to maximise revenue. We also installed new cabin seats, and such to improve our products and services,” JAL explained in a statement.
“In route operations, the Boeing 787 was returned to service on Narita-Boston/San Diego, Haneda-Beijing and Narita/Haneda-Singapore routes from June 1, 2013, and deployed on Narita-Delhi route on July 12, 2013, and on Narita-Moscow and Haneda-San Francisco routes on September 1 to increase product competitiveness and operational cost efficiency.
“The postponed Narita-Helsinki route was launched on July 1, 2013. While temporarily reducing flights on Narita-Beijing route to flexibly respond to sluggish demand and improve profitability, the Boeing 767 was replaced with the larger Boeing 777-200ER to meet robust demand on Narita-Honolulu and Chubu/Kansai-Honolulu routes,” it added.
The airline has also raised its full-year forecast, and now expects to generate net profits of JPY128bn, compared to the previous guidance of JPY118bn.