Cargo operations help JAL post record profit

Cargo operations help JAL post record profit

Credit: Kentaro Iemoto

Japan Airlines Corp.’s revenue from cargo operations grew faster than overall revenue in the first quarter of fiscal 2015, helping the carrier’s net profit surge 120.7 percent in the April-June quarter from the same three-month period last year to 32.6 billion yen ($263 million) on a consolidated basis.

The airline’s group revenue from both international and domestic cargo operations in the first quarter of fiscal 2015 amounted to 20.5 billion yen, up 3.5 percent from a year earlier.

Revenue from domestic cargo operations edged down 0.5 percent year-on-year in the April-June quarter to 5.7 billion yen “due to intensifying competition,” JAL said in an earnings release.

But the slight decline in domestic cargo revenue was more than offset by relatively strong growth in international cargo revenue, which rose 5.1 percent to 14.7 billion yen.

JAL attributed much of this growth to “special shipments from Japan” as U.S. West Coast labor tensions resulted in severe congestion and cargo diversions.

“As a result, the volume of international cargo in terms of Revenue Cargo Ton Kilometers (RCTK) in the first quarter increased by 9.4 percent year-on-year,” the carrier said.

JAL also said, “In domestic cargo operations, shipments of parcels were steady and strong. As a result, the volume of domestic cargo during the reporting period when measured in RCTK increased by 9.7 percent from a year earlier.”

Contact Hisane Masaki at yiu45535@nifty.com.