Japan Airlines hopes to achieve an operating profit of ¥140 billion ($1.4 billion) in its 2014 fiscal year to 31 March 2015.
This is marginally lower than the operating profit of ¥158 billion that it is forecasting for its 2013 fiscal year ended on 31 March 2014.
“The JAL Group must humbly reflect and learn from its mistakes of the past,” says the company in a statement outlining its medium term plan.
The company acknowledges that high fuel costs and a weak yen are likely to remain burdens. As such, its net profit forecast for the 2014 financial year is ¥115 billion, considerably down from the ¥148 billion yen it forecasts for 2013. As for operating revenue, the carrier forecasts ¥1.4 trillion in in 2014, up from ¥1.3 trillion in 2013.
“A severe business environment prevailed through the past two years, as we faced the suspension of 787 operations and rapid depreciation of Japanese Yen,” says the company.
“Under such a severe environment, we worked to launch new products, enhance service, and improve productivity. As a result, we achieved a profit margin over 10%, but we reported lower earnings on higher revenues. Responding to the severe business environment is one of our challenges to address in the future.”
JAL is 96% owned by Japan’s Enterprise Turnaround Initiative Corporation, with the remaining 4% of its share capital held in unknown hands.