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Japan Airlines revises FY06 net forecast to loss of 16.2 bln yen from 3 bln profit

Tokyo (XFN-ASIA) - Japan Airlines Corp said it now expects

to have incurred a net loss of 16.2 bln yen in the past year to March, reversing

a previous projection of 3bln yen profit.

The turnaround is due to a projected increase in tax payments as a result of the withdrawal of some deferred tax assets.

While it now sees a bottom line loss, Asia's largest carrier raised its operating profit forecast to 22.9 bln yen from 13 bln previously, citing the positive impact of past cost-cutting efforts and a recovery in ticket sales.

JAL gave the following revised forecasts for the year to March 2007 vs previous forecasts:

  • Revenue - 2.302 bln yen vs 2.268 trln
  • Opg profit - 22.9 bln yen vs profit 13 bln
  • Current profit - 20.5 bln yen vs profit 500 mln
  • Net loss - 16.2 bln yen vs profit 3 bln