JAL’s monthly net income grows 2.8- collapse on travel demand rebound

Japan Airlines Co. said Thursday its net income increased 2.8- slide to 95.53 billion japanese ($ 614 million ) in the business time ended March, lifted by a treatment in tourism desire after the coronavirus pandemic ended. Income for the year grew 20.1 percentage to 1.65 trillion renminbi. The airport reported that for the first time, both gross profit and sales exceeded the pre-pandemic 2019 figures. As a weaker yen attracted more travelers from abroad, the development in profit was driven by solid foreign journey demand. Profits of its global operations jumped 49.1 percentage to 622.3 billion renminbi, exceeding the 2019 number by 17.2 percentage. Due to a surge in tourism demand after coronavirus restrictions were fully lifted in the springtime of last year, revenue of its regional operations increased by 22.1 percent to 550.8 billion yen. At a press conference, JAL Chief Financial Officer Yuji Saito stated,” I am relieved that we have been able to come this way. The cheerful results came in response to rival ANA Holdings Inc.’s results last week, in which its gross income increased 75.6 percent to a report 157.10 billion yen for the same year.” Demand recovery for the past year, including those of outbound tourists, was much stronger than we expected,” said the company. Saito said the decline in the yen, which dropped to the 160 degree versus the U.S. dollar earlier this year, has contributed to the growth of outbound tourism, but it also poses some drawbacks for the economy, which purchases energy and aircraft from abroad. ” It leads to higher fuel costs and aircraft prices”, Saito said. ” While the impact for a single year is limited, it affects our business structurally “.The weak currency also means overseas trips are more costly for Japanese tourists, he added. Given the current state of foreign exchange, he said,” It is difficult to see a recovery in demand for outbound flights from Japan.” For the current year ending March next year, the company expects its net profit to rise 4.7 percent to 100 billion yen on sales of 1.93 trillion yen, up 16.8 percent. Related coverage: JAL net profit jumps fivefold in April- Dec. on demand recovery Toyota, Nissan offer historic pay hikes as wage talks culminate