Japan Airlines (JAL) has reported an 8% year-on-year decline in its net income to yen (Y) 172 billion ($1.76 billion) for its fiscal year 2012.
JAL's operating revenue for the 12 months to 31 March grew by 2.8% to Y1.24 trillion, compared with Y1.20 trillion in the previous fiscal year.
The Oneworld alliance member's operating income fell by 4.7% year on year to Y195 billion, while operating expenses increased by 4.4% to Y1.04 trillion for the full year.
Cash and cash equivalents amounted to Y99.4 billion at the end of the year.
The carrier said that although post-quake restoration continued to drive the Japanese economy in the fiscal year, the rebound was blunted by a slowdown in the global economy. The entry of low-cost carriers into the market and fierce competition among legacy carriers resulted in an increase in supply of capacity.
"In addition to rising fuel prices, the Japanese yen weakened and triggered a rise in fuel costs. As such, the JAL Group finds itself in a tough operating environment," says the carrier.
For the fiscal year ending 31 March 2014, the airline forecasts operating revenues of Y1.27 trillion, up by 2.7%; an operating income of Y140 billion, a decline of 28.3%; and net income of Y118 billion, a decrease of 31.3% year on year.