Japan’s national carrier, Japan Airlines (JAL), has reported a 30.9 per cent drop in net income attributable to owners of the parent for the first half of the 2016 fiscal year. The airline saw its net income drop to 71.4 billion yen (US$695.8 million) for the period April 1 to September 30, 2016, down from 103.3 billion yen (US$1.01 billion) the previous year.
The figures were announced in JAL’s Consolidated Financial Results on Monday (October 31, 2016). The carrier also revised its consolidated financial forecast for the fiscal year ending March 31, 2017 to 161.0 billion yen (US$1.57 billion), 31 per cent lower than its previous forecast announced on April 28, 2016.
Responding to an enquiry by Business Traveller Asia-Pacific, JAL provided the following comment: “The decrease in profit for the first six months with JAL was attributed to the down of domestic revenue impacted from the 2016 Kumamoto earthquakes, and reduced fuel surcharges in international passenger and cargo operations, in addition to the Japanese yen becoming stronger.
“JAL has revised down its financial forecast for the full fiscal year through March 31, 2017, based on its expectation of continuing appreciation of the yen, weaker demand (especially outbound) in international passenger operations and less revenue per passenger for both international and domestic.
“JAL will be continuing to make every effort to maximise its profit.”
The news comes as rival Japanese carrier, All Nippon Airways (ANA), reported a 57.4 billion yen (US$559 million) consolidated net income attributable to owners of ANA Holdings for the first half of 2016, a 6.4 per cent increase over the same period in 2015. The airline cited tight operational management and control of expenses as key measures to offset reduced revenues as a result of the earthquake, yen appreciation and terrorist attacks in Europe.
In recent months, JAL has begun codesharing with Iberia on flights between Madrid and Tokyo Narita following the announcement that the Spanish carrier would be joining an existing joint business agreement between JAL, British Airways and Finnair. The carrier also entered into a global partnership with independent airport lounge membership programme Priority Pass earlier this month, along with announcing a decision to maintain no fuel surcharge on all international passenger tickets purchased between December 1, 2016 and January 31, 2017.