Japan Airlines cuts outlook as H1 net profit dives

Japan Airlines Monday slashed its full-year earnings outlook, and warned its fiscal H1 net profit nosedived owing to a slump in its international business. While falling oil prices have helped carriers' profits - fuel is often an airline's single-biggest expense - the loss of a fuel surcharge imposed to deal with previously sky-high crude prices was taking a toll on the bottom line, the carrier said. For the six months through September, JAL said its net profit shrank to Y71.4b (US$682m), down more than 30% from a year ago. The firm also warned that full-year net profit would come in at 161b yen, down from a previous estimate of Y192b for the fiscal year through March. JAL's full-year revenue is now seen at Y1.28t, against Y1.34t projected earlier. The revisions were "primarily due to weaker demand in international passenger operations and less revenue per passenger both in international and domestic than expected", the airline said.<br/>