Japan Airlines (JAL) has reported its net profit plunge 32.1 per cent in the first quarter, as fuel price increases and global economic uncertainties affected the airline’s finances.
The carrier recorded a net profit attributable to owners of the parent of 11.9 billion yen (US$109 million), a significant fall on the same quarter last year when it was 17.5 billon yen.
Operating profit decreased 15.6 per cent year-over-year (YOY) to 21 billion yen and ordinary profit decreased 7.9 per cent from the previous year to 21.2 billion yen.
JAL also reported that operating revenue for the first quarter increased four per cent YOY to 355.7 billion yen, but operating expenses increased 5.5 per cent YOY to 334.6 billion yen.
The airline said the total international passenger and cargo demand saw limited growth, but the domestic sector was rather strong throughout the first quarter.
In international passenger operations, JAL said business demand from Japan weakened as the global economic growth slowed, including routes to North America. In addition, the supply-demand situation worsened on European routes due to a surplus in the industry.
However, inbound business demand has remained strong for North American routes and saw a slight recovery for routes in China and Southeast Asia.
In the international sector, available seat kilometres (ASK) increased by 2.9 per cent YOY, passenger traffic grew by 0.5 per cent YOY, revenue passenger kilometres (RPK) rose by 1.4 per cent YOY, and the load factor reached 80.2 per cent.
In domestic passenger operations, JAL said both leisure and business demand continued to remain strong, especially to Okinawa and Hokkaido.
Available seat kilometres (ASK) increased by 0.7 per cent YOY, passenger traffic grew by 4.3 per cent YOY, revenue passenger kilometres (RPK) rose by 5.5 per cent and the load factor reached 71.9 per cent.