File Photo: JAL’s plane will fly near Haneda Airport in Tokyo on August 24, 2016. Taken on August 24, 2016.Reuters / Kim Jeong Hoon
August 3, 2021
Tokyo (Reuters) -Japan Airlines (JAL) has implemented pandemic-related cost reductions on Tuesday, and travel demand is very low.
The performance of Japan’s second-largest airline in the three months to June 30 was worse than the estimated loss of 73.5 billion yen by five analysts surveyed by Refinitiv, but 1,310 in the same quarter last year. It was smaller than the operating loss of 100 million yen.
JAL did not provide a full-year earnings forecast, saying that uncertainty made it too difficult to forecast. According to an average of 10 analysts surveyed by Refinitiv, carriers could record an annual operating loss of 108.6 billion.
Japanese airlines, like other airlines, have run out of cash reserves to retain the jets and workers they will need when travel demand recovers.
In the new wave of coronavirus infection, travel restrictions around the world are still in place, with record-breaking new cases in Japan.
Domestic passenger numbers in the April-June quarter were more than double the previous year, but less than one-third of pre-pandemic levels. International traffic has quadrupled from last year, but passengers were only 6.2% of the same quarter two years ago.
JAL does not operate dedicated freighters like its rival ANA Holdings, but one of the bright spots for airlines is cargo demand.
JAL is expanding its budget unit focusing on tourism demand in Asia to adapt to the long-term decline in business travel.
As part of this, Zipair, a subsidiary of the company, has increased the number of fuel-efficient Boeing 787 aircraft and established Spring Airlines Japan, a joint venture with Spring Airlines of China.
We will also discontinue 26 of the old 777 widebody aircraft and add a new Airbus SEA350 jet.
In November, JAL strengthened its funds by providing 183 billion yen, which is 30% of the existing shares….