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Japan Airlines expects better operating profit in fiscal 2010 on recovery

Japan Airlines expects better operating profit in fiscal 2010 on recovery

Japan Airlines raised its profit forecast for its core operations in fiscal 2010, and gave a business plan Friday that it said underlined its recovery on cost cuts, route changes, job reductions and other efforts.
Other parts of the plan were unchanged from an earlier plan, including the speed-up of job reductions from 53,100 employees last year to 48,800, a cut of 4,300 jobs, or 8 percent, by the end of March 2009, instead of by the end of March 2010.
The job cuts are being carried out by early retirement and natural attrition, JAL spokesman Stephen Pearlman said.
Under the latest plan, Japan Airlines Corp. gave its operating profit forecast for the fiscal year through March 2011 at 96 billion yen (US$916 million; euro606 million), an improvement from an earlier projection for 88 billion yen (US$840 million; euro556 million) operating profit.
Japan's biggest airline, known as JAL, has been trying to turn itself around, cutting staff, dropping unprofitable routes, shifting to fuel-efficient aircraft and focusing on "premium" business travelers.
A shift toward cheaper-to-run subsidiary airlines has also helped boost operating profit, according to JAL.
A soaring fuel bill, costly early retirement packages and a tarnished image from a series of safety lapses have hurt JAL in recent years. It has struggling to regain customer confidence after Japanese passengers opted for rival All Nippon Airways.
JAL is forecasting 7 billion yen (US$66.8 million; euro44.2 million) in net profit for the fiscal year through March.
The airline swung into the black in the July-September quarter of 2007 after losing money in the fiscal first quarter and the previous two straight fiscal years.
Earlier this month, it reported for the October-December quarter a 13.1 billion yen (US$125 million; euro83 million) profit, reversing a 10.8 billion yen loss the same quarter the previous year. It was the second straight quarterly profit after more than two years of losses.
At that time, JAL chairman Toshiyuki Shinmachi, 65, announced that he is quitting March 31, having seen the company back on track to profit, to make room for younger leadership.
A series of safety problems, which began in 2005, has tarnished JAL's image, including wheels falling off during a landing and an engine that burst into flames. No one was injured in the problems.


Updated : 2021-02-27 20:43 GMT+08:00