JAL profits dip in first half
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Japan Airlines suffered a slight downturn in profits in the first half of its financial year.
For the April-September 2014 period, the national carrier generated net profits of JPY80.3 billion (US$714.7 million), 2.0% lower than the corresponding period last year.
JAL’s operating revenues actually increased 3.7% to JPY659.3bn in the first half, including a 5.3% rise in international passenger revenues. But the company’s expenses climbed 4.9% to JPY563.4bn, leading to the reduced profit.
JAL said it continued to be impacted by the struggling Japanese economy, including “sluggish” consumer spending and the depreciation of the yen, which impacts the airline’s costs.
Despite this, the airline remained confident enough to raise its full-year profit forecast for 2014-15 from JPY115bn to JPY135bn.
According to JAL, this will be achievable due to “falling fuel prices and persistent cost reductions in the second-half”. The airline’s full-year revenue forecast however, has been reduced by JPY10bn to JPY1.34 trillion.
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