MIAMI – Japan Airlines (JL) with a 97% slump in international travel, has reported a loss of around JPY85bn (about US$812m) between the months of July and September in comparison with a JPY60.2bn profit for the previous period last year.
Revenue sank by 70% down to around JPY110bn with a government program allowing JL to boost domestic service nearly threefold in comparison with the April-June quarter.
A Better Future
Analysists had projected a JPY71.5b loss on average and with a pickup in domestic traffic fares are still low as many are still reluctant to return to the skies.
With JL redoubling on reducing the fixed costs associated with aircraft and labor, the airline has a strong capital ration standing with 46% at the end of June.
The carrier even predicts a path to profitability for the year ending in March 2021 provided a recovery to 80% of pre-pandemic levels in the domestic market and 50% in the international market, the future for JL is by no means bleak.
As a historic note, JL flew its first post-war domestic service today in 1951. You can read all about it in our most recent Today in Aviation article.
Featured image: Sergey Kustov – Japan-Airlines Boeing-787-846-Dreamliner/2110805/L/, CC BY-SA 3.0