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Japan Airlines forecasts decline in operating profit on weak yen

Japan Airlines expects operating profit to decline slightly in the financial year starting in April as a weaker yen increases expenses paid in foreign currencies. The company predicts operating profit of JPY201b (US$1.8b) for the next business year, compared with JPY204b in the year ending in March, the carrier said Thursday. The airline forecasts sales will increase to JPY1.343t from an estimated JPY1.337t this year. Japan is benefiting from a surge in tourism, with visitors to the country in 2015 exceeding those traveling abroad for the first time in 45 years as a weaker yen makes it cheaper to travel in the country. Still, a weaker yen raises costs for Japanese airlines paying for expenses such as fuel in foreign currencies. The current year’s sales forecast is slightly reduced from an earlier projection. <br/>