Japan Airlines profit soars but spat with China over sea territory weighs
November 3, 2012, 12:03 am TWN
TOKYO -- Japan Airlines on Friday raised its full-year profit forecast to US$1.74 billion as the carrier, which only exited bankruptcy last year, released its first results since relisting on Tokyo's stock market.
The airline — whose collapse was one of Japan's worst-ever corporate failures — said net profit would rise to 140 billion yen (US$1.74 billion) in the year to March as it cut costs and enjoyed heavy demand for new international routes.
But it warned that a simmering trade spat between Tokyo and Beijing has weighed on revenue as it trimmed its full-year sales target to 1.21 trillion yen, from 1.22 trillion yen.
JAL and rival All Nippon Airways both cancelled thousands of flights in the wake of huge anti-Japan protests in China after Tokyo in mid-September nationalized a group of disputed islands in the East China Sea.