Friday, 7th August 2009
In Business In Japan,
Japan Airlines posts huge loss
Asia's biggest carrier Japan Airlines has posted a large loss during the first part of the year.
Figures from the group show that it lost 99 billion yen (£618 million) in the three months leading up to May, after a drop in ticket sales hit performance.
This is a stark increase on the losses previously posted by the ailing airline, which stood at around 3.4 billion yen for the same period in 2008.
The news comes as the carrier is set to take a government loan to try and keep its head above water.
Senior vice-president of Japan Airlines Yoshimasa Kanayama noted that despite measures by the firm to cut costs, the reduction in expenditure was not enough to offset the drop in the company's income.
"Our earnings results turned out to be very grim," he conceded.
The airline has been hit by a reduction in passenger numbers as many tourists continue to reduce their travel due to fears over swine flu.
Written by Kimberley Homer.
Related news stories:
Japan Airlines gets bid from consortium (18th September 2009)
Japan Airlines announces US airline deal (13th January 2011)
Japan Airlines 'to take American offer' (9th February 2010)
New management take over Japan Airlines (3rd February 2010)
US carrier makes new offer to Japan Airlines (3rd December 2009)