JAL Reports Slide
In Net EarningsJapan Air Lines Co. reported unconsolidated net earnings for the six months ended Sept. 30 declined 79 percent to 1.9 billion yen ($12.4 million based on Sept. 30 exchange rate) or 12.63 yen a share from 9.02 billion yen ($58.8 million) or 64.81 yen a share a year earlier. Operating earnings declined to 2.29 billion yen from 3.25 billion yen while revenue fell 11.1 percent to 400.58 billion yen from 450.56 billion. Operating expenses declined to 2.46 billion yen from 2.7 billion.
JAL attributed the decline in net earnings and revenue largely to the impact of the strong yen, which made the company's air cargo services more expensive for foreign clients. The company said increased revenue from the Japanese tourist boom spurred by the yen's buying power overseas was offset by a drop in foreign tourists using the carrier to fly to Japan.
JAL is still feeling the effects of a domestic crash by one of its jumbo jets in August 1985 that killed more than 500 people.
KLM Airlines Posts
Net Profit for Quarter
AMSTERDAM, Netherlands - KLM Airlines reported a second quarter net profit of $173.3 million guilders (US$75.3 million), down 8.1 percent on the 188.6 guilders ($480 million) a year earlier.
(The U.S. figures are based on the exchange rate for Nov. 5.)
The company said the half year result showed net profit down 15.9 percent at 255.5 million guilders ($109.6 million), compared with 303.7 million guilders ($130.2 million) a year earlier.
Despite a slightly higher load factor,68.5 in the latest quarter compared with 67.4 in the same quarter last year, turnover was down 11 percent at 1.51 billion guilders, ($647.5 million) compared with 1.69 billion ($724.7 million) in the same three months last year.
Amsterdam stock analysts said there was little remarkable about the result, and the KLM share price hardly affected.