|Japan Airlines Corp. reported Friday its group operating profit for the first half of fiscal 2008 dropped 46.6 percent from a year earlier to 30.23 billion yen, mainly due to high fuel prices and slack demand for air travel amid a global economic slowdown.
During the April-September period, JAL's revenues fell 6.1 percent to 1.07 trillion yen while pretax profit declined 69.3 percent to 18.02 billion yen.
But its net profit marked more than a fivefold increase to 36. 67 billion yen, thanks to an extraordinary gain of around 41.2 billion yen from the sale of its subsidiary JAL Card Inc. to Mitsubishi UFJ Financial Group Inc.
For the whole fiscal year, JAL now expects an operating profit of 28 billion yen, down from an earlier projected 50 billion yen, on 2.09 trillion yen in revenues, down from a previous forecast of 2.18 trillion yen. It kept its net profit forecast unchanged at 13 billion yen.
The airlines also cut its operating profit forecast for the whole of fiscal 2008 to next March by 44 percent from its earlier projection, citing declining demand for international flights particularly among business travelers.
Revenues from international services managed to grow 2.5 percent from a year earlier to 393.81 billion yen. But the total international passenger demand measured in terms of revenue passenger kilometers slid 9.9 percent on declining demand on routes to China and Guam as well as weaker demand on those to the United States and Europe.