TOKYO: While uncertainty remains over when or if travel demand will make a full-fledged recovery from the coronavirus pandemic, Japan's two major airlines are positioning themselves to take advantage of any upturn with a punt on low-cost services.
Pandemic plunges JAL into 1st net loss since 2012 relisting
Japan Airlines Co. reported Friday a net loss of 286.69 billion yen ($2.6 billion) for the business year through March as the coronavirus pandemic depressed travel demand, causing the air carrier to log its first red ink since relisting in 2012 following rehabilitation.
JAL, which has been undergoing cost-cutting to ride out the COVID-19 crisis, did not disclose earnings forecasts for the current year through next March, citing uncertainty.
The carrier said it incurred a loss of 398.31 billion yen before interest and taxes as sales plunged 65.3 percent from the year before to 481.23 billion yen in the year through March 31.
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Kyodo May 7, 2021
Japan Airlines Co. on Friday reported a net loss of ¥286.69 billion for the business year through March as the coronavirus pandemic depressed travel demand, causing the company to log its first red ink since relisting in 2012 following business rehabilitation.
JAL, which has been undergoing cost-cutting to ride out the COVID-19 crisis, did not disclose earnings forecasts for the current year through next March, citing uncertainty.
The COVID-19 pandemic couldn’t have come at a worse time for Japan’s tourism industry.
The nation was anticipating an influx of big-spending foreign travelers to the 2020 Summer Olympics in Tokyo. The quadrennial sporting extravaganza was postponed for a year, however, and is now slated to be held in July without any of the estimated 1 million overseas spectators in attendance.
Meanwhile, domestic travel has been hammered by wave after wave of virus infections that have led to a third state of emergency and a slew of restrictive measures adopted by a growing number of cities and prefectures, dealing crushing blows to hotels and travel agencies as well as air and ground transportation operators.