Japan Airlines projects higher losses over pandemic

Japan Airlines said it now expected larger losses as the aviation industry struggles against the headwinds of the pandemic

Japan Airlines said Monday it forecasts a larger-than-expected annual net loss of nearly $2.9 billion, as the aviation industry continues to struggle from the fallout of the coronavirus pandemic.

Japan’s second-largest carrier said it projected a net loss of 300 billion yen for the year ending March 2021, up from its previous forecast of 240-270 billion yen.

“Severe worldwide restrictions on international travel have caused international passenger demand to virtually disappear,” it said in a statement.

“Many countries and areas are suffering again from the rebound of the (virus’s) spread, which makes the recovery of international passenger demand hard to foresee.”

JAL suffered a net loss of 212.7 billion yen in the April-December period, plunging from a 74.8 billion yen profit for the same period a year before.

It posted sales of 356.5 billion yen for the same period, a drop of a third from sales figures of 1.1 trillion yen the previous year.

Last week, its rival ANA Holdings maintained its forecast for a record $4.9 billion net loss this financial year.

ANA, Japan’s biggest airline, announced nine-month net losses of 309.6 billion yen ($3 billion)—a record, and a sharp drop from the 86.4 billion yen in profit it logged in the same period the previous year.

But ANA’s executive vice-president and chief financial officer said their “recovery is underway.”

In October, ANA announced a major restructuring plan, having already announced it would halt recruitment for 2021/22, and not replace the approximately 3,000 workers who retire every year.

The Nikkei Business Daily said on Monday that about 1,000 Japan Airlines staff are being transferred to companies outside the JAL group as it weathers the effects of the pandemic.

Japan’s airlines had expected a bumper year in 2020, when the Tokyo Olympics were due to be held and tourist numbers were expected to break records.

The Games are now scheduled to open in July, but with rising new infections there are doubts about whether that will be feasible and if foreign spectators will be allowed.


Japan Airlines forecasts over $2.3 bn annual net loss


© 2021 AFP

Citation:
Japan Airlines projects higher losses over pandemic (2021, February 1)
retrieved 1 February 2021
from https://techxplore.com/news/2021-02-japan-airlines-higher-losses-pandemic.html

This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.


Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get in Touch

350FansLike
100FollowersFollow
281FollowersFollow
150FollowersFollow

Recommend for You

Oh hi there 👋
It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

We don’t spam! Read our privacy policy for more info.

You might also like

PlayStation 5: Sony unveils futuristic design, announces host of...

New Delhi: Sony has unveiled the much awaited PlayStation 5 via an online event,...

TikTok Launches Marketing Program For Advertisers

TikTok launched a marketing program on Thursday to attract more advertisers with tools to...