Japan Airlines says back in profit, but sees drop ahead

Japan Airlines Corp. said Friday that it had returned to profit in the year to March after two straight annual losses, but forecast a 23 percent drop in earnings this year amid high fuel costs.

Asia’s largest carrier has moved to restore its financial health by slashing thousands of jobs, scrapping unprofitable routes and stepping up lucrative business class services.
“Downsizing efforts have paid off,” Yoshimasa Kanayama, an executive board member of the company, told a news conference.

“Even though the JAL Group has made great strides towards achieving its overriding goal of building a robust management framework, a business structure which can produce profits even in the face of factors such as rising fuel costs or slowing demand, the business environment continues to be severe,” a JAL statement warned.

Asia Times