Japan Airlines Corp President Masaru Onishi stated the carrier would not revise its profit goal for FY2011 despite the impact of the 11-Mar-2011 earthquake on passenger traffic, especially on international routes (Kyodo News, 14-Apr-2011). The carrier believes it is possible to still reported a JPY75.7 billion (USD904 million) operating profit for the 12 months ended 31-Mar-2012, as per the target set prior to the earthquake. The carrier also stated that domestic passenger demand has "stopped falling and is gradually rising from around the end of March". The carrier stated it would counter the ‘‘harsh situation’’ for international services by maintaining capacity reductions on some routes. JAL will also bring forward the implementation of measures to reduce expenses, although personnel cuts will not form part of this plan.
JAL to maintain profit goal despite earthquake: President
You may also be interested in the following articles...
Finnair accelerates capacity growth, led by long haul; seeks cost efficiency through fleet & labour
In 2016 Finnair accelerated its rate of capacity growth after a modest return to expansion in 2015, following cuts in 2014. It also experienced a fall in unit revenue (as did most European airlines), most notably in the regions of highest capacity growth, i.e. the long haul markets North America and Asia.
Asia is Finnair's most important long haul market (Japan and China are its two biggest markets by ASKs) and its ranking by seats on routes between European and NE/SE Asia is disproportionate. It has ambitious growth plans in the region and will increase frequencies to Tokyo and Hong Kong this summer. Its long haul network, which will also extend to San Francisco this summer and Goa next winter, is largely founded on connecting traffic via its Helsinki hub.
Finnair's return to capacity growth has coincided with a return to profit, but lower fuel prices were the main driver of its bottom line improvement. Its profit margins remain slim and, beyond the vagaries of fuel price benefits, Finnair aims for more sustainable unit cost cuts. Fleet strategy and labour productivity form a two pronged attack on its cost base.
State of the Market; Global aircraft leasing continues its international shift from west to east
Aviation leasing continues to see a favourable outlook, growing rapidly in both size and importance. The sector is enjoying a combination of easily available funding at low interest rates and strong lease yields, while it’s airline customers benefit from record profits, lower fuel costs and strong air travel demand.