August 6, 2008
JAL Swings to Operating Profit
Tokyo, Aug. 6 (Jiji Press)--Japan Airlines returned to an operating profit in April-June, sources familiar with the matter told Jiji Press Wednesday.
For the fiscal first quarter, the firm is believed to have secured a consolidated operating profit of several billion yen, against the year-before loss of 8.5 billion yen.This is the airline's first operating profit for the quarter since its business integration with Japan Air System Co. in October 2002.
The firm will announce its earnings on Thursday.
The turnaround was a result of brisk demand for international flights from business travelers and the favorable effects of restructuring efforts.
Growth in demand for flights between Japan and U.S. and European destinations more than offset weakness in Japan-China flights stemming from riots in Tibet and a powerful earthquake in Sichuan Province.
Jet fuel prices rose beyond the anticipated 110 dollars per barrel to 120-170 dollars. But the impact was mitigated by hedge trading.
Fare hikes, personnel cost cuts and the ending of unprofitable flight routes also contributed to the turnaround. [EARNINGS]END
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