The global aviation industry has faced severe brunt of the coronavirus pandemic and in relation to the same, the Japan Airlines Co. said, it posted a net loss of 93.71 billion yen (881.63 million U.S. dollars) in the April-June quarter.
The Japan Airlines Co. Ltd. (JAL) said, it logged an operating loss of 131.01 billion yen (1.23 billion U.S. dollars) in the April-June quarter, on revenue of 76.39 billion yen (718.81 million U.S. dollars), which was a drop of more than 78 percent compared to a year earlier.
Owing to uncertainty amid the continued pandemic, JAL said it projects profits from domestic and international passengers to slump as much as 65 percent, compared to last year’s revenue of 1.06 trillion yen (9.97 billion U.S. dollars). From international passengers, revenue plummeted 97.9 percent to 2.7 billion yen (25.40 million U.S. dollars), while that from domestic travellers tumbled 85.1 percent to 18.9 billion yen (177.86 million U.S. dollars), in the reporting period, JAL said.
Hideki Kikuyama, a senior managing executive officer of JAL said, “It is very hard to foresee a path to recovery right now,” but he was optimistic that JAL will “survive this crisis.”
Hideki Kikuyama said that the cash reserves remained stable as of the end of June and wholesale restructuring operations would be conducted in a bid to cut fixed costs by 90 billion yen (847.14 million U.S. dollars).
In order to survive the global pandemic, the JAL strategies to postpone its earlier plans to invest 80 billion yen (753.01 million U.S. dollars) in new planes and similar spending for fiscal 2020.