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Declining air fares and slack demand for seats in the forward cabin caused Japan Airlines’ sales to decrease to 1.16 trillion yen in the business year that ended March 31, down 5.1 percent from the previous year.

JAL’s operating profit fell 19.9 percent to 24.8 billion yen, though the carrier managed to report 32.5 billion yen in pretax profits due to the sales of aircraft and from rebates on aircraft purchases.

The carrier posted 26.3 billion yen in a net profit.

Although the number of passengers increased, per passenger revenue decreased due to fare cuts amid intensifying competition and slack demand for first and business class seats on international services, the officials said.

Meanwhile, Japan Air System’s sales increased to 332.8 billion yen, up 2.2 percent from the previous year. The carrier posted 780 million yen in operating profits by increasing flights on profitable trunk routes and decreasing those on unprofitable routes.

In the past two business years, the country’s third largest airline reduced flights on 46 domestic routes.

The carrier reported 3.4 billion yen in pretax profits and 251 million yen in net profits.

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