Japan Airlines Corp. said on Tuesday that its group net profit tumbled 8.0 percent in fiscal 2012, which ended on March 31, from a year earlier to 171.672 billion yen ($1.75 billion), despite revenue growth.
JAL’s group revenue from overall operations rose 2.8 percent in fiscal 2012 from a year earlier to 1.239 trillion yen ($12.64 billion). Its group operating profit dropped 4.7 percent to 195.242 billion yen ($1.99 billion).
The carrier said that both operating and net profits fell due largely to higher fuel costs.
JAL’s group revenue from both international and domestic cargo operations in fiscal 2012 amounted to 75.5 billion yen ($770.41 million), down 4.1 percent from the previous fiscal year.
“International cargo operations experienced sluggish inbound and outbound demand on the whole, but sales sections responded flexibly such as seeking new customers, improving services to existing customers, and capturing transit cargo in order to maximize revenue,” JAL said in an earnings release.
“Domestic cargo operations encountered sluggish demand from the second half of the fiscal year, but we strove to capture perishables and home delivery parcels by improving customer relations. We also operated extra flights flexibly to meet the needs of our customers,” JAL said.
JAL also announced its group revenue and profit forecasts for fiscal 2013: 1.272 trillion yen ($12.98 billion) in operating revenue, up 2.7 percent from fiscal 2012; 140.000 billion yen ($1.43 billion) in operating profit, down 28.3 percent from fiscal 2012; 118.000 billion yen ($1.20 billion) in net profit, down 31.3 percent from fiscal 2012.
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. JAL shares were delisted from the Tokyo Stock Exchange (TSE) the following month. But the carrier flew out of bankruptcy protection in March 2011 and relisted on the TSE in September last year.