A significant rise in traffic and revenue could not offset higher fuel prices for Japan Airlines, with the carrier reporting a drop in net profit for the 3 months through June 30. JAL group’s net profit for the period—its financial year Q1—was down 10.3% year-over-year to JPY17.5b (US$156.4m). However, the airline is sticking with its previous forecast of a net profit of JPY110b for the full fiscal year. The group managed to boost its quarterly revenue by 8.7% YOY to JPY342.1b. Operating costs rose at the higher rate of 9.3%. Higher revenue resulted from healthy passenger demand. Traffic rose by 6.3%, versus a 5% capacity rise. International capacity increased by 7.3%, while domestic was up by 1.6%. In the international operation, JAL reported stable outbound demand and strong inbound demand. <br/>