JAL first-half operating profit falls despite stronger demand

Japan Airlines posted a 2.3% fall in operating profit to JPY96.8b (US$855m) for the 6 months to Sept 30 as higher fuel costs offset stronger passenger demand in key markets. Revenue for the half-year period rose 8.4% to JPY750b, with a 7.1% increase in international revenue, and a 1.2% rise across its domestic network. Cargo revenue also rose 5.6%. Expenses increased 10% to JPY653b, as fuel costs rose 23%. Other costs also increased 7%. Net attributable profit declined 5.9% to JPY73.3b. During the 6 month period, the carrier established TBL Co, which will form the basis of a new medium- and long-haul low-cost carrier. “Preparations have begun to launch medium- and long-haul flights to destinations in Asia, Europe and the Americas from its base at Tokyo (Narita) International in 2020,” it says. <br/>