Japan’s ANA, JAL turn profit despite downturn

Japan’s two biggest airlines, JAL and ANA, have both experienced a significant drop in profits in the first three quarters of the financial year, as rising fuel costs and a weak Japanese yen impacted results.


JAL turn profit despite downturn Japan’s ANA


Japan’s two biggest airlines, JAL and ANA, have both experienced a significant drop in profits in the first three quarters of the financial year, as rising fuel costs and a weak Japanese yen impacted results. But despite this downturn, the two airlines have both produced net profits with JAL posting a net profit of JPY123.5 billion (US$1.2 billion) for the nine months ending 31 year-on-year, while ANA’s net profits shrank 36.2 per cent to JPY33.3 billion (US$326 million).

Both airlines posted a significant rise in operating revenues, with JAL’s rising 5.1 per cent to JPY989.9 billion and ANA’s increasing 7.1 per cent to JPY1.21 trillion. But this increase of turnover was outpaced by rising operating expenses with JAL’s costs rising 8.7 per cent while ANA’s climbed 11.5 per cent.

“Operating expenses rose by JPY118.3 billion (US$1.158 billion), or 11.5 per cent, resulting in a reduction in operating income, recurring profit and net income for the period. The main reason for the increase in operating expenses was a rise in fuel costs caused by the weakening of the Japanese yen,” ANA said in a statement.