[161111.EN.AIR] JAL Back From Bankruptcy With US$1.25 Million Profit In First Half

JAPANESE flag carrier Japan Airlines (JAL) has reported net profits of JPY97.4 billion (US$1.25 million) in the first half fiscal 2011, evidence of its robust return from bankruptcy in January 2010.

The move by the airline to a different cargo-based model using passenger bellyholds and freighters, and the suspension of scheduled freight flights from October 2010 has boosted it's performance in the April to September 2011 period.

During this quarter the group's pre-tax profit totalled $1.32 billion based on revenue of $7.69 billion of which international cargo business contributed $346.15 million and domestic cargo $155.13 million. JAL did not provide year-on-year results for the same period 2010 as it remained under bankruptcy protection.

Its rise from bankruptcy in April was attributed to its withdrawal from unprofitable routes and capacity rationalisation. Its international cargo business benefited from an increased demand for automotive parts and other cargo goods resulting from the earthquake and the expansion of international connections at Tokyo's Haneda airport.

"Cargo capacity on JAL in terms of revenue cargo ton-kilometre (RCTK) is 52.2 per cent down versus last year," said the airline.

Its forecast for the remaining fiscal 2011-2012 is "unclear" due in part to the Europe debt crisis and company projects a healthy net profit of $1.54 billion from revenue of $14.74 billion.

Source : HKSG, 14.11.11.