JAL mired in red with international traffic down 97%

Japan Airlines is expected to report another big loss for the July-September quarter as international traffic remains in a pandemic-induced slump. The carrier's operating loss apparently came to about 85b yen ($812m), compared with a 60.2b yen profit a year earlier. Revenue sank 70% to around 110b yen, with passenger traffic on international flights down 97%. A government program to promote domestic travel boosted traffic in Japan, nearly tripling from the April-June quarter. Combined with cost cutting, JAL narrowed its operating loss on a quarterly basis. Analysts had projected a 71.5b yen loss on average. Despite the pickup in domestic traffic, fares appear to have taken a hit as the coronavirus resurgence in August dampened demand during the peak summer travel season. JAL is redoubling cost-cutting efforts to stem the losses, laying out plans in August to further reduce fixed costs associated with aircraft and labor. JAL's overall financial health does not appear to be in doubt, with the company's capital ratio standing at 46% at the end of June. <br/>