Ja­pan Air­lines cuts full-year out­look as first-half net profit dives

The Sun (Malaysia) - - SUNBIZ -

TOKYO: Ja­pan Air­lines yes­ter­day slashed its full-year earn­ings out­look as it said fis­cal first-half net profit nose­dived ow­ing to a slump in its in­ter­na­tional busi­ness.

The car­rier said its bot­tom line in the six months through Septem­ber shrank to ¥71.4 bil­lion (RM2.86 bil­lion), down more than 30% from a year ago, with a stronger yen also tak­ing a toll.

The firm warned that full-year net profit would come in at ¥161 bil­lion, down from an ear­lier es­ti­mate of ¥192 bil­lion for the year through March.

By con­trast, ri­val car­rier All Nip­pon Air­ways said it cruised to an­other rise in net profit, point­ing to cost-cut­ting ef­forts and a pick up in busi­ness travel from Europe, North Amer­ica and Asia. The car­rier’s par­ent, ANA Hold­ings, posted net profit of ¥57.4 bil­lion for the six months to Septem­ber, up 6.4% from a year ago, although rev­enue fell 2.9% to ¥885 bil­lion.

It said its profit gain was largely due to “tight op­er­a­tional man­age­ment and con­trol of ex­penses”. ANA left its net profit fore­cast un­changed at ¥80 bil­lion but slightly trimmed its full-year sales pro­jec­tion to ¥1.74 tril­lion from ¥1.8 tril­lion. – AFP

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