Japan Airlines Corp. reported Monday a group net loss of 23 billion yen for the first three quarters of fiscal 2005, slumping from a net profit of 79.2 billion yen it logged in the same period the previous year.
JAL blamed surging fuel prices and a decline in domestic and international passengers for the dismal results.
From April to December, JAL posted an operating loss of 800 million yen, compared with an operating profit of 83 billion yen the previous year, despite 3.6 percent year-on-year growth in sales to 1.67 trillion yen.
In contrast, archrival All Nippon Airways Co. posted a net profit of 29.9 billion yen and an operating profit of 89.9 billion yen for the same period.
Fuel costs for the nation's top carrier rose 66.4 billion yen from the previous year to 284 billion yen as oil prices during the period averaged $71.3 per barrel of Singapore kerosene compared with $49 per barrel in the same period of fiscal 2004.
JAL forecast that fuel prices would average $54 per barrel in the current fiscal year.
In an effort to counter rising fuel prices, JAL raised domestic and international air fares and instituted cost-cutting measures. During the nine-month period, the fare hikes generated 10 billion yen in additional sales and JAL slashed 45.5 billion yen in costs, company officials said. The carrier, however, said it still expects to fall into the red for the full year.
JAL said international passengers in the period dropped 2.8 percent year-on-year to 10.7 million.
Thanks to the fare hikes, however, JAL said it raised revenue per passenger by 4.5 percent and managed to generate higher sales from international operations.
On the domestic front, however, JAL said it saw a 1.5 percent decline in passengers to 33.4 million as customers turned to other carriers after a spate of safety-related problems surfaced last year.