Japan Airlines Corp. (JAL) said on Jan. 31 that its group net profit tumbled in the first three quarters of fiscal 2013, which started on April 1, 2013, from a year earlier, despite increased revenues from both passenger and cargo operations.
JAL posted a net profit of ¥123.5 billion yen (US$1.2 billion) on a consolidated basis in the April-December period, down 12.2 percent from the same nine-month period of 2012. Rival ANA Holdings saw an even bigger drop, with its profit falling 36.2 percent year-over-year in the same period to ¥33.3 billion.
JAL’s group revenue from overall operations rose 5.1 percent in the first three quarters of fiscal 2013 on a year-on-year basis to ¥989.9 billion. Its group operating profit also plunged 13.1 percent to ¥137.5 billion.
JAL blamed the sharp declines in both operating and net profits largely on higher fuel costs due to the yen’s weakening against the U.S. dollar.
JAL’s group revenue from both international and domestic cargo operations in the April-December period amounted to ¥60.2 billion, up 4.4 percent from a year earlier.
Of the overall cargo revenue, ¥40.5 billion came from international operations, up 6.1 percent from a year earlier, and the remaining ¥19.6 billion came from domestic operations, up 1.2 percent year-on-year.
Looking back on international cargo operations in the April-December period, JAL said in an earnings release, “In addition to a recovery in outbound demand from Japan since last autumn, we strove to increase volume and maximize revenue by attracting perishable commodities overseas, amongst others.”
“Though the environment remained severe, we managed to secure demand surpassing the previous year. During the reporting period, the volume of international cargo in terms of revenue-cargo-ton-kilometer (RCTK) increased by 9.8 percent year-on-year,” the carrier said.
JAL also revised upward its group revenue and profit forecasts for the whole of fiscal 2013, which were announced on Oct. 31.
The carrier’s new full-year projections are ¥1.3 trillion in operating revenue, up 4.2 percent from fiscal 2012; ¥158.0 billion in operating profit, down 19.1 percent from fiscal 2012; ¥148.0 billion in net profit, down 13.8 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 2012.