JAL more than doubles profit forecast
05 May 2008
Tokyo: The JAL Group has issued a revised full-year forecast for the year ended 31 March, 2008, which says that "trends in recent performance" led it to more than double its expected net earnings to ¥16 billion ($153.9 million) from the ¥7 billion projected in its earlier forecast in November.
Last year, JAL had reported a ¥16.2 billion loss for the year ended 31 March, 2007.
In a statement, JAL said that the revision was ''a result of the effectiveness of 'premium strategies' aimed at attracting business and top-tier travelers through product and service enhancement and development.'' It added that international passenger demand has been robust, though domestic passenger demand was slightly lower than expected.
JAL said that the key has been "the effectiveness of group-wide cost reform implemented during FY07." It expects annual costs to be around ¥2.14 trillion, lower by 2.3 per cent than what was announced in its' November forecast, and 6.1 per cent lower compared to the previous year.
Fiscal year operating income is estimated be around ¥90 billion, as compared to the originally forecast ¥48 billion. A year ago, it was ¥22.9 billion. The company will release final results 9 May.
