Japan Airlines Corp reported an operating profit of JPY23.1 billion (USD276 million) in Oct-2010 (Bloomberg/The Nikkei, 01-Dec-2010). It reported a record operating profit of JPY109.6 billion (USD1.3 billion) for Apr-2010 to Sep-2010 compared with a JPY96 billion (USD1.1 billion) loss in the previous corresponding period. The results prompted Hideo Seto, head of the Enterprise Turnaround Initiative Corp of Japan Committee overseeing JAL's rehabilitation, to comment: "The improvement in earnings is striking." The results were boosted by earning gains related to exchange rates and reduced fuel costs. The carrier plans to boost its operating profit to record levels within the next three years as set under its restructuring plans.
JAL reports USD276m operating profit in Oct-2010
You may also be interested in the following articles...
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround.
Vueling NEXT Part 2: new CEO to lead IAG's LCC in restructuring bid to achieve IAG targets
Vueling's new CEO, Javier Sanchez-Prieto, is leading a programme ('Vueling NEXT') to improve its profitability, both through revenue enhancement and cost efficiency gains. Among other aims this hopes to reduce Vueling's high levels of seasonality, to raise aircraft utilisation and to improve labour productivity. Given ambitious financial targets by IAG – action is needed.
Part 1 of CAPA's analysis of Vueling examined its capacity growth and profitability trends since its acquisition by IAG in 2013. Vueling's operating margin and return on invested capital are on a downward trend, hence the new initiative to reverse these trends.
This second part of CAPA's analysis considers the profit improvement programme. During this programme Vueling's fleet will remain broadly flat to 2018, before resuming growth thereafter. Focus markets for Vueling are domestic Spain and Spain-Europe. It has strengths in these markets but faces growing competition from its lower-cost rival Ryanair, which has also been raising its service quality – closing the gap to Vueling's more premium positioning on the LCC spectrum.