Japan Airlines' First Quarterly Profits Since Pandemic
Japan Airlines (JL) has posted its first quarterly profit since the start of the pandemic.
Japan Airlines (JL) has posted its first quarterly profit since the start of the pandemic.
DALLAS - Japan Airlines (JL) has posted its first quarterly profit for the first time since the beginning of the COVID pandemic. In the three months to September, JL posted earnings before interest and tax (EBIT) of Y27.9bn (US$189m). Meanwhile, revenues jumped 122% to ¥349.6bn (US$2.4bn).
Low-cost subsidiaries ZIPAIR (ZG), Spring Japan (IJ), and Jetstar Japan (GK) produced ¥8.1bn (US$54m) in revenues, up from ¥0.8bn (US$5.3m).
The airline has said that the results have been helped by the recovery of international air travel and a continuing strong performance in its cargo operation. Indeed, freight revenues increased by 28.3% to ¥126bn (US$849m).
In an official statement, JL said, “Passenger demand for both international and domestic [travel] is steadily recovering as a result of a growing trend toward a balance of preventing the COVID-19 pandemic and socio-economic activities.”
“International passenger demand is gradually recovering due to continued strong transit demand between Asia and North America amid a global recovery in passenger demand, as well as a gradual recovery of demand for outbound business trips and tourism demand.”
Japan has faced stringent covid restrictions during the pandemic. This saw a cap on the number of international passengers allowed to enter the country. Twenty thousand per day were permitted in June 2022, which increased to 50,000 in September. Domestic flights have also benefitted from a government support program, offering a 40% discount on air travel.
Japan Airlines has now raised its yearly forecast revenue to ¥1,404bn (US$9.5bn), an increase of ¥14bn from its previous forecast. However, it offers a cautious outlook for the coming months, with concerns over a “seventh wave” of coronavirus.
Featured image: JL's profits have been boosted by a surge in international air travel. Photo: Christian Winter/Airways
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