Japan Airlines Corp. (JAL) said on Monday that its net profit declined 3.7 percent in the first nine months of fiscal 2012, which started on April 1, 2012, from a year earlier to $1.51 billion on a consolidated basis.
JAL’s group revenue from overall operations rose 3.6 percent in the April-December period from a year earlier to $10.13 billion. Its group operating profit dropped 2.2 percent to $1.70 billion.
The carrier said that both operating and net profits fell despite the revenue growth, due largely to higher fuel and other costs.
JAL’s revenue from both international and domestic cargo operations in the April-December period amounted to $618.28 million, down 3.7 percent from a year earlier.
“International cargo operations experienced sluggish inbound and outbound overall demand,” JAL said in an earnings release. “Domestic cargo operations encountered sluggish demand from the second half of the fiscal year.”
Last month, JAL grounded its entire feet of seven Boeing 787 Dreamliner passenger jets due to battery problems. But the airline revised upward its group revenue and profit forecasts for the whole of fiscal 2012, which were announced on Nov. 2.
JAL cited “robust” business, especially on European, North American and Southeast Asian routes. “Various measures including new products and services, which were steadily promoted, are also expected to uplift revenue,” the carrier said. Continued cost-cutting efforts are also expected to help boost profits, it added.
JAL’s new full-year projections are as follows: $13.20 billion in operating revenue, up 1.9 percent from fiscal 2011; $2.00 billion in operating profit, down 9.2 percent from fiscal 2011; $1.75 billion in net profit, down 12.7 percent from fiscal 2011.
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.