JAL profit surges despite weak air cargo revenue

JAL profit surges despite weak air cargo revenue

Japan Airlines’s net profit surged 28.7 percent year-over-year in the April-September period to 103.4 billion yen ($854 million), as lower fuel prices and cost-reduction efforts more than made up for a decline in cargo operations revenue.

Revenue from cargo operations slipped 0.9 percent year-over-year in the April-September to 40.7 billion yen ($339 million). Revenue from international cargo operations rose 0.6 percent from a year earlier to 28.9 billion yen, while domestic cargo business fell 4.4 percent year-on-year to 11.7 billion yen.

JAL’s group revenue from overall operations, including passenger operations, rose 0.6 percent in the first half of fiscal 2015 from the same six-month period of 2014, totaling 687.9 billion yen.

JAL said that it managed to achieve growth in revenue from international cargo operations despite weaker demand for cargo transportation between Japan and foreign countries by “efficiently capturing transit shipments.” 

ANA Holdings Inc., the parent firm of All Nippon Airways and JAL’s domestic rival, also reported poor cargo results for the first half of fiscal 2015 on Wednesday.

ANA Holdings’ group revenue from international cargo operations totaled 58.3 billion yen in the April-September period, down 2.4 percent from a year earlier, while its group revenue from domestic cargo operations amounted to 15.5 billion yen, down 3.7 percent year-over-year.

Contact Hisane Masaki at yiu45535@nifty.com.