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JAL group net profit drops 19% in April-June on higher fuel costs

Kyodo

Japan Airlines Co. said Tuesday its group net profit for the April to June quarter fell 19.4 percent from a year earlier to ¥14.78 billion, due to a rise in operating costs stemming from higher fuel prices and maintenance expenses for airplanes.

The airline said its group operating profit dropped 15.6 percent to ¥18.62 billion on consolidated revenue of ¥307.08 billion, up 4.4 percent, boosted by an increase in travelers on overseas routes.

Its revenue for overseas flights increased 8.4 percent, due to an expansion of its slots for international flights at Haneda airport. Its routes for North America also fared well among business travelers, while an increase in the number of tourists to Japan also helped lift the revenue.

Meanwhile, its revenue for domestic routes fell 2.8 percent, as a decline in average revenue per customer more than offset an increase in the number of travelers, the company said.

JAL left unchanged its group earnings outlook for the full business year through next March, expecting group net profit to fall 30.8 percent from the previous year to ¥115 billion, and operating profit to drop 16.1 percent to ¥140 billion, on revenue of ¥1.35 trillion, up 3.1 percent.