Hisane Masaki, Special Correspondent | May 14, 2012 8:56AM EDT
Japan Airlines Corp. (JAL) said on Monday that it posted a net profit of $2.33 billion on a consolidated basis in fiscal 2011, which ended on March 31, despite a decline in passenger numbers.
The airline, which is now in the process of rehabilitating itself, attributed the strong showing to strenuous cost-cutting efforts, including the withdrawal from many unprofitable routes. JAL gave no comparable net profit figure for fiscal 2010.
JAL’s group revenue from its overall operations totaled $15.06 billion in fiscal 2011, including $671.25 million from international cargo operations and $312.50 million from domestic cargo operations. JAL’s group revenue from its overall operations in fiscal 2011 was down 11.6 percent from fiscal 2010.
The airline posted a group operating profit of $2.56 billion in fiscal 2011, the biggest amount on record. The previous record group operating profit of $2.36 billion was set in fiscal 2010.
JAL filed for bankruptcy protection in January 2010 under the Corporate Rehabilitation Law, which is similar to Chapter 11 in the U.S., marking one of the biggest corporate failures in Japanese history. The Tokyo Stock Exchange (TSE) delisted JAL shares the following month.
JAL exited bankruptcy protection in March 2011. The airline plans to relist on the TSE this autumn, demonstrating its recovery from bankruptcy both nominally and virtually.
On its international cargo operations in fiscal 2011, JAL said in an earnings release, “Amid the decline in overall cargo demand from overseas, JAL moved quickly to meet the sudden increase in demand for air transportation of automobile parts, cigarettes, etc. after the Great East Japan Earthquake.”
“Larger aircraft were also utilized in response to the urgent need for transport of goods after the severe flooding in Thailand in October,” the carrier said.
On its domestic cargo operations, JAL said, “Following the Great East Japan Earthquake, demand for transport of cargo shifted from surface and marine modes to air, which JAL made efforts to meet.”
JAL also announced its group revenue and profit forecasts for fiscal 2012: $15.25 billion in operating revenue, up 1.3 percent from fiscal 2011; $1.88 billion in operating profit, down 26.8 percent from fiscal 2011; $1.63 billion in net profit, down 30.3 percent from fiscal 2011.
Contact Hisane Masaki at yiu45535@nifty.com.
