Japan Airlines has raised its annual net profit to JPY174.4b (US$1.6b) for the year through March 31, compared to a profit of JPY149b in the prior year. The carrier’s profit gain was 17.1% in the 2015/2016 financial year, with operating revenue dropping 0.6%. Another strong result is projected for the year through March 2017 with a forecast net profit of JPY192b. JAL raised its international capacity 1.3% for the 2015/2016 year, and while traffic was up 5.4%, international revenue declined 1.3%. Results varied widely according to region, with transpacific routes to North America seeing the highest growth rates of 7.7% due in large part to new service from Tokyo Narita to Dallas/Fort Worth. Domestic capacity decreased 1.2% for the financial year, although traffic rose 1.5% and revenue increased 2.8%. <br/>
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Qantas said it will keep its Airbus A380s in service beyond 2020 as it conducts talks with Boeing on its next-generation 777X jets. "The A380s do a great job on the markets that they operate," said Gareth Evans, head of the company's international business. Qantas currently operates a fleet of 12 A380s. "They are big units on big thick routes like Los Angeles and London, flying into slot-constrained airports," said Evans. With the latest variant of the 777 aircraft not due to enter into service until early next decade, Qantas is in talks with both Boeing and Airbus about their latest aircraft, Evans said. While an order is not imminent, Evans said, conversations with Boeing revolve around the "scope and capability" of the 777X, which will have 2 variants, a 777-8 with a longer range, and a 777-9 with more capacity but a slightly shorter range. <br/>
LATAM Airlines Group is cutting capacity in Brazil, its biggest market, to cope with the country’s struggling economy, but nevertheless unveiled Thursday its first brand update since its 2012 merger. The company has already reduced flights in Brazil and slashed plans to buy new planes. It cut capacity in Brazil’s domestic market by 2.5% last year and expects to reduce it by another 8% to 10% this year, according to Enrique Cueto, LATAM’s CE. Brazil’s economy is forecast to shrink 3.9% this year, after contracting 3.8% in 2015, and the Brazilian real lost about 30% of its value against the dollar last year. That combination hit demand for travel and pushed up local-currency costs, Cueto explained, adding that he expects Brazil’s economy to be weak for another 2 years. <br/>
Air Berlin’s net loss for 2015 widened 16% to E447m as the airline was hurt by fuel hedging losses and restructuring costs. Air Berlin has been trying to reduce debt and return to profit, but is facing tough competition in its home markets from LCCs as well as incumbent Lufthansa. “We have [Etihad’s] support for the aggressive and radical restructuring of our business. However, there are still hard decisions to be made, which require the clear support of key internal stakeholders,” said CE Stefan Pichler. Among cost cutting measures, the carrier slashed 6% of its capacity last year, scrapping routes to Dallas and Abu Dhabi recently. “Like the other restructuring initiatives, however, this will start to show benefits in our efficiency and cost base in the second half of this year,” said Pichler. <br/>