Japan Airlines logs $2.6b loss
Japan Airlines posted an annual net loss of $2.6 billion Friday but did not release a forecast for the current financial year, citing uncertainty around the coronavirus pandemic.
The carrier, Japan's secondlargest by market share, suffered a net loss of 286.7 billion yen for the year through March-its first full-year result in the red since it relisted on the Tokyo Stock Exchange in 2012.
"There has been no indication of passenger demand recovery yet" due to restrictions on international travel and tougher immigration measures, JAL said. "Our situation has been severe throughout this fiscal year." The company last week revised its projection for 2020-21 net loss to 287 billion yen from a 300 billion yen forecast in February.
JAL said it had decided not to release an outlook for the year ending March 2022, warning "it is difficult to foresee the recovery of demand while the global spread of Covid-19 shows no sign of slowdown". Sales plunged 65.3 percent compared to the previous year to 481.2 billion yen.
Last month, Japan's top airline ANA reported its worst ever annual loss of 404.6 billion yen, which was smaller than the firm's earlier projection. But ANA Holdings said it expects to see a rebound to 3.5 billion yen net profit in 2021-22, as the coronavirus disruption that has battered the aviation industry worldwide begins to ease.
Japan's airlines had expected a bumper year in 2020, when the Tokyo Olympics were originally due to be held and tourist numbers were expected to break records.
The postponed Games are now set to open in July, but overseas spectators have already been barred from the event, with a decision on domestic fans delayed until June. Most markets in Asia and Europe rose Thursday as investors welcomed a strong jobs report from the United States that reinforced optimism that the world's top economy is well on the recovery track, though inflation concerns continue to dog trading floors.
The White House's support for a global waiver on patent protections for Covid-19 vaccines also provided some cheer as it lifted hope for a speedier recovery in poorer nations that have struggled to access the jabs.
US private firms added 742,000 jobs in April, payrolls firm ADP said Wednesday, marking a fourth straight monthly gain, with much of them in the crucial services sector, which was hardest hit by virus lockdowns and other restrictions last year.
The reading, while slightly short of forecasts, confirmed that the battle against unemployment is being won, and analysts said the improvement was expected to continue as the reopening continues. It also bodes well for Friday's closely watched government data, which provides a snapshot of the state of the economy.
But there is a growing fear that the expected burst of economic activity this year caused by pent-up consumers returning to stores and restaurants-with government cash in their pockets-will send inflation rocketing and force the Federal Reserve to tighten its ultra-loose monetary policy.