Japan Airlines reported a 3.1 percent year-over-year drop in group net profit for the first three quarters of fiscal 2014, to 119.684 billion yen (US$1.01 billion), despite a nearly double-digit rise in international cargo revenue.
JAL’s group revenue from overall operations increased 3.3 percent in the April-December period from a year earlier to 1.022 trillion yen. Its group operating profit edged up 0.5 percent to 138.252 billion yen.
JAL’s group revenue from both international and domestic cargo operations in the April-December period totaled 63.1 billion yen, up 5.0 percent from the same nine-month period of 2013.
Of the overall cargo revenue, 44.3 billion yen came from international operations, up 9.4 percent from a year earlier, and the remaining 18.8 billion yen came from domestic operations, down 4.2 percent year-over-year.
Looking back on international cargo operations in the April-December period, JAL said in an earnings release, “We actively captured automobile shipments, etc., from Japan, spurred by the growth of exports especially to North America, improved revenue management, and efficiently captured transit shipments to maximize revenue.
“As a result, the volume of international cargo handled during the reporting period in terms of revenue cargo ton kilometers (RCTK) increased by 13.1 percent year-on-year,” the carrier said.
“Domestic cargo operations were affected by a modal shift from surface transportation to air transportation because of a shortage of trucks. However, because of the decrease in supply, the volume of domestic cargo handled during the reporting period when measured in revenue cargo ton kilometers decreased by 3.0 percent year-over-year,” JAL said.
The carrier revised slightly upward its group revenue and profit forecasts for fiscal 2014, which were announced on Oct. 31.
The carrier’s new projections for the current fiscal year are: 1.342 trillion yen in operating revenue, up 2.5 percent from fiscal 2013; 167.000 billion yen in operating profit, up 0.1 percent from fiscal 2013; and 139.000 billion yen in net profit, down 16.4 percent from fiscal 2013.
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 the following month. But the carrier flew out of bankruptcy protection in March 2011 and relisted on the TSE in September 2012.
Contact Hisane Masaki at firstname.lastname@example.org.