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JAL expects to return to profit a year earlier than expected, traffic better than expected

7-Jun-2010 10:00 AM

Japan Airlines Corp expects to return to profitability on a consolidated basis in the current fiscal year to Mar-2011, the first time in three years and one year earlier than planned (Kyodo News/Nikkei, 07-Jun-2010). JAL has reportedly included the forecast of a JPY22 billion (USD240 million) operating profit in its draft income and expense plan, submitted to its main lenders, instead of an expected operating loss of more than JPY30 billion (USD327 million). JAL also expects group operating profit to increase to JPY73 billion (USD796 million) in FY2011 and to JPY115 billion (USD1.3 billion) in FY2012, with revenue to be flat for the next three years. President, Masuru Onishi, stated the carrier is experiencing passenger demand ahead of the conservative expectations outlined in its restructuring plan (Reuters, 05-Jun-2010). Mr Onishi added the implementation of the restructuring plan was generally on track.