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Japan Airlines (JAL) announced on the 30th that final profits and losses for this period (ending March 2021) will be in the red from 240 billion yen to 270 billion yen. This is because demand for aviation remains sluggish due to the influence of the new corona virus, and it will be the first time since the reinstatement in 2012 that it will be in the red.
JAL Logo (September 26, Narita Airport)
Photographer: Akio Kon / Bloomberg
Forecast of the 10 Bloomberg analysts for the current periodThe average value was a deficit of 212.2 billion yen. The company has not decided its earnings outlook, saying it may fluctuate significantly depending on the infection status of the new corona virus and the degree of recovery in passenger demand.
| Summary of financial results |
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Forecast for Fiscal Year Ending March 31, 2009
July-September Results
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Both the profit and loss outlook for this period and the results for July-September were worse than the market forecast, but JAL Managing Director Hideki Kikuyama said at a meeting in Tokyo: “Of course, management wants to target to profitability as soon as possible. Yes, and if we can make it profitable next year, of course I’d like to move towards that. “
According to JAL financial statements, the outflow of funds from July to September was approximately 15-20 billion yen per month, down from 45-50 billion yen per month from April to June. Mr. Kikuyama said that the outflow of funds from the third quarter onwards could probably continue at the same level of moderation and that “the impact of Corona is somewhat uncertain, but the situation is well tolerated in the future.”
JAL plans to add a 100 billion yen commitment line to further ensure liquidity. In August, JAL announced that it had raised around 300 billion yen since February and increased its credit line to secure 200 billion yen.
According to managing director Kikuyama, JAL will reduce the number of aircraft it owns by 12 to 226 by the end of March due to the revision of the equipment plan in response to low demand. The 13 large Boeing 777 airliners for domestic flights are said to be retired by the end of fiscal 2010.
The company said it would reduce fixed costs by an additional 10 billion yen, aiming for a total reduction of 100 billion yen compared to the initial assumption. On the other hand, in cooperation with partner partners such as Jetstar, we will strengthen the cheap airline business (LCC) to build a network based at Narita Airport, and also strengthen non-aviation business and other efforts for future growth. Also proceed.
Due to the impact of the new Crown, many routes have been suspended or reduced, and airlines, which are heavily burdened with fixed costs, are in an unprecedented crisis. JAL CompetitionANA Holdings (HD) also announced this week that it is expected to run an operating deficit of 505 billion yen this period.
The International Air Transport Association (IATA) revised down its sales outlook for the entire aviation industry in 2009 on the 27th, amid mounting concerns about prolonged stagnation in passenger demand due to re-expansion. of infections in Europe and the United States.He announced the prospect of halving. He argued that government support was needed to prevent airline bankruptcies and large-scale downsizing.
In Japan, the Ministry of Land, Infrastructure, Transport and Tourism announced on the 28th a policy package to support aviation-related businesses, focusing on airport landing fees, reductions and exemptions, and postponement of paying taxes.
(We will update by adding comments from JAL executives at the meeting.)
