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Japan Airlines' quarterly profit rises

Japan Airlines' quarterly profit rises

Japan Airlines Corp. said profits climbed in the July-September quarter even as its business performance worsened, as it booked higher special profits and lower extraordinary expenses for the period.
The airline said net profit for the fiscal second quarter climbed to 40.09 billion yen ($413 million) from 11.60 billion yen a year earlier.
But revenues slipped 6 percent, costs rose on restructuring and fuel charges, and its operating profit plunged by 60 percent, to 26.31 billion yen ($271 million) from 65.20 billion yen.
Operating profit measures revenue minus regular business expenses but excludes taxes and other extraordinary items not related to a company's main business.
JAL said it continued to reform its operations, shifting to smaller planes and hedging fuel costs.
The company has been struggling to turn itself around through job cuts, more fuel-efficient aircraft and a focus on business travelers, but its fuel bills and early retirement packages have hurt its profitability.
The company's net profit in the quarter rose as special costs from early retirement programs a year earlier came off its books, and it had special profits from credit card operations and sales of stock in a subsidiary.
For the current fiscal year, JAL cut its target revenue to 2.09 trillion yen from 2.18 trillion yen, and slashed its operating revenue to 28 billion yen from 50 billion yen. It maintained its forecast for a net profit of 13 billion yen.