29-Mar-2011 10:56 AM

Japan Airlines' reservations slump following quake

Japan Airlines warned that tough times still lie ahead for the carrier, with the immediate concern being slumping tourist arrivals related to the earthquake/tsunami/radiation threats in northeast Japan (Agence France-Presse/Dow Jones Newswires, 29-Mar-2011). “We cannot be optimistic. Reservations are not growing on the back of concerns and uncertainty about the nuclear power plants,” JAL president Masaru Onishi said. The carrier has reported a 28% decline in domestic passengers and a 25% slump in international passengers following the quake. "Passenger cancellations are continuing and revenue from March is falling heavily," Chairman Kazuo Inamori added. Mr Inamori did not say whether JAL would need to recraft its business plan to address the earthquake crisis. "We have no specific proposals on what to do. But I am confident that we have a management that can endure a significant downside" from the quake.

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