JAL bids farewell to bankruptcy

JAPAN Airlines, which had bankruptcy protection for 14 months, has posted a net profit of 97.4 billion yen (US$1.25 billion) on a consolidated basis in the first half of 2011 fiscal year.

Cost-cutting efforts have also seen international cargo revenue total $346.15 million

JAL’s group revenue from its overall operations totalled $7.69 billion in the April-September period, including $155.13 million from domestic cargo operations.

“Alongside efforts to stimulate demand for air cargo transportation between international gateways and local regions after the internationalization of Haneda airport [Tokyo], JAL has also been carrying increased amounts of automotive parts and other cargo goods related to the Japan earthquake,” the company said.

Cargo capacity on JAL in terms of revenue cargo tonne-kilometres is 52.2 per cent down versus last year.

The carrier did not issue any comparable financial figures for the same six-month period last year, when the airline was still under bankruptcy protection. JAL left protection in late March, 14 months after going into it.

“The company has strengthened its resilience against risks in the operating environment through measures implemented in the course of its restructuring last year,” JAL said.

JAL’s austerity measures included: withdrawal from unprofitable routes, review of the group’s fleet on each route, reductions in fuel expenses and other fixed costs, and the introduction of a new revenue management system.

The business outlook from here however is unclear with the volatile economic situation in Europe related to the debt issues in Greece, as well as the possible lingering effects of flooding in Thailand.