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JAL cuts earnings forecast to 16.2 billion yen loss for fiscal year

JAL cuts earnings forecast to 16.2 billion yen loss for fiscal year

Japan Airlines Corp. drastically lowered its earnings forecast Wednesday to a net loss of 16.2 billion yen (US$134.6 million; euro98.9 million) for the fiscal year through March, far worse than an earlier projection of a 3 billion yen (US$25 million; euro18 million) profit.
That would be the second consecutive year of red ink for JAL, Japan's largest airline.
The expected loss stems from a decision not to count 44.7 billion yen (US$371.6 million; euro273.1 million) in deferred tax assets as part of the air carrier's profit, JAL said in a statement.
It raised its sales forecast slightly to 2.3 trillion yen (US$19.1 billion; euro14 billion) for the fiscal year from an earlier estimate of 2.27 trillion yen. Last fiscal year, sales totaled 2.2 trillion yen.
Airline officials announced the expected losses at a news conference Wednesday after Japan's leading business daily, The Nikkei, reported that JAL would likely report a 16 billion yen annual loss.
The company will release final earnings results on May 9.
The airline said the revision reflected an effort to estimate future taxable income more carefully after failing to achieve profit targets in recent years due to "unprecedented" events such as surging fuel prices and the Iraq war.
The latest forecast also includes a special loss of 6 billion yen (US$49.9 million; euro36.7 million) in payment for early retirement benefits as part of its restructuring program, JAL said.
The company called the revision "extremely regrettable" but was because of "our measure to achieve corporate revitalization."
But streamlining measures helped the company achieve significant gains in sales and pretax profit, the said.
For fiscal 2005, JAL posted a 47.2 billion yen loss (US$423 million; euro333 million) as fliers switched in droves to rivals after a spate of safety lapses.


Updated : 2021-04-11 03:33 GMT+08:00