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JAL Sinks Into Losses  
User currently offlineOmoo From , joined Dec 1969, posts, RR:
Posted (8 years 10 months 1 day 6 hours ago) and read 1552 times:

TOKYO (AP) - Japan Airlines Corp. sank into a loss for the first half through September as soaring fuel prices and safety concerns eroded profits, the nation's top carrier said Monday.

Japan Airlines, known as JAL, posted group net loss of 12.04 billion yen (US$102 million; euro86 million) for the six months -- the airlines' first half-year loss in two years. The Tokyo-based company had recorded an 82.96 billion yen profit the same period a year ago.

Sales for the period rose 3.4 percent to 1.11 trillion yen (US$9.4 billion; euro7.9 billion) from 1.08 trillion yen a year ago.

Japan Airlines revised its earnings forecast for the full year ending March 31, 2006, to a 47 billion yen (US$397 million; euro336.5 million) loss. It had previously expected a 17 billion yen (US$144 million; euro122 million) profit.

It slashed its revenue outlook to 2.195 trillion yen (US$18.6 billion; euro15.7 billion), down from its earlier 2.209 trillion yen (US$18.7 billion; euro15.8 billion) prediction.

source: http://news.moneycentral.msn.com/pro...p?feed=AP&Date=20051107&ID=5218218

5 replies: All unread, jump to last
 
User currently offlineBBJII From United Kingdom, joined Jul 2005, 850 posts, RR: 4
Reply 1, posted (8 years 10 months 1 day 4 hours ago) and read 1491 times:

Saw an interveiw with an Analyst from Japan on BBC news this morning.

JAL are saying that they lost money due to:

High Fuel Prices and the number of Big Jets they fly.
Human Errors in Maintainance that lead to Negative Press.
And competitive pricing from ANA and NCA.

Ahh, they took the easy way out  Smile

 wave 



Remember: The Bird Hit You, You Didn't Hit The Bird.....
User currently offlineCarpethead From Japan, joined Aug 2004, 2954 posts, RR: 3
Reply 2, posted (8 years 10 months 1 day 4 hours ago) and read 1467 times:

JL has posted the first six-month earnings as noted above plus some news on fleet during the coming few years. During the 2006-2008 period, JL expect to take delivery of 4 787 and 19 738 according to its statement. It also mentions the replacement of all thirty 747 classics by 2009. It appears Boeing is going to get some more business in the near future. Most likely candidates will be additional 772ERs and 773ERs. Unfortunately, the 747Advanced will not be available within those timeline.

User currently offlineAvFan4ever From United States of America, joined Feb 2005, 81 posts, RR: 0
Reply 3, posted (8 years 10 months 23 hours ago) and read 1371 times:

Quoting BBJII (Reply 1):
Ahh, they took the easy way out

Why do you say that? Are there other reasons JAL didn't mention?


User currently offlineAirFrnt From United States of America, joined Jul 2004, 2826 posts, RR: 42
Reply 4, posted (8 years 10 months 18 hours ago) and read 1251 times:

Quoting BBJII (Reply 1):

High Fuel Prices and the number of Big Jets they fly.

Heh.... And people keep wondering why the asian carriers aren't snapping up the A380.


User currently offlineTokyoNarita From Palau, joined Aug 2003, 570 posts, RR: 0
Reply 5, posted (8 years 10 months 11 hours ago) and read 1141 times:

Quote:
Most likely candidates will be additional 772ERs and 773ERs. Unfortunately, the 747Advanced will not be available within those timeline.

JAL doesn't really need the B747 advanced for now...or JAL may not need them at ALL in the future...right now they wish they can turn all their B747 classics to B777s overnight and want to convert more B747-400 to cargo where there is a lot of demand. JAL (Also ANA) absolutely love the B777s and they fit almost in every major market...in the domestic, medium and long haul routes...this one fleet includes 4 different versions, the 200, the 300, the 200ER and the 300ER and they cover the majority of flying for JAL! The passenger and cargo capacity of B777-300ER is very comparable to the current B747-400 fleet in both domestic and international configurations. Where does JAL absolutely need the B747? How about domestic routes? Their B777-300 in domestic configuration already carries over 500 people and the 3 and 4 engine aircraft are continuing to see a lot of restrictions in Japanese airports. Osaka Itami airport no longer allows B747s. Their place in Japan is constantly shrinking.

JAL is starting to realize that the B747 classics are starting to become a real problem...the 200s are almost gone but they still have sizeable 300 fleet. They are not cheap to operate and maintain...and they have no choice but to fly them in the low yield routes like Hawaii, Australia and the parts of southeast Asia...They also require flight engineers, needs more parts, eats tons of gas and probably starting to become a real maintenance hog. The most of them have seen 20 years of service and they are truly the thing of the past...but they can't get rid of these things fast enough...and I think all of this has very much to do with JAL's financial problem.

TokyoNarita.

[Edited 2005-11-08 03:05:48]

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