JAL Lost Record $1.47 Billion

Struggling Japan Airlines suffered a net loss of $1.47 billion in the first half of fiscal 2009, which started in April.

The net loss in the April-September period compares with a net profit of $406.7 million a year earlier and is the largest amount on record for any fiscal first-half period.

JAL's group operating revenue from its overall operations tumbled 28.8 percent in the April-September period from a year earlier to $8.49 billion.

JAL, the largest carrier in Asia, is seeking a turnaround through a complicated process under state supervision. Major U.S. airlines Delta Air Lines and American Airlines are also in the running to invest in the troubled Japanese airline.

JAL blamed the dismal financial results in the first half of fiscal 2009 on sharply weaker travel and air cargo transport demand amid the continued global economic downturn, triggered by the financial crisis in the United States in the autumn of last year, and the global pandemic threat of swine flu, or H1N1 influenza.

"The operating environment of the JAL group during this reporting period remained extremely severe," JAL said in an earnings release.

JAL's group operating revenue from the international cargo business plunged 54.9 percent year on year to $477.8 million in the April-September period. But the airline did not say how much it lost in the international cargo business.

On its international cargo operations, JAL said, "While the rate of decline in export and import demands, in particular to and from China, showed signs of slowing down, they remain weak under the pressures of the global economic downturn and the strength of the yen."

JAL withdrew its group revenue and profit forecasts for the whole of fiscal 2009, which were announced on Aug.7.

"The JAL group is currently formulating the proposed business revitalization plan with the intention of reconstructing the businesses of the JAL group. However, as agreement regarding the proposed business revitalization plan has not yet been reached between the parties concerned, the proposed business revitalization plan, which will be the basis of the performance forecast, has not been finalized, and it is thus difficult to forecast future performance," JAL said.

Contact Hisane Masaki at yiu45535@nifty.com.