Japan Airlines raises earning forecast despite 787 grounding

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Japan Airlines (JAL) has raised its earning forecast for its fiscal year 2012/13 despite the continued grounding of its Boeing 787 fleet.

The Japanese carrier forecasts a net income of yen (Y) 163 billion ($1.76 billion) for its fiscal year ending 31 March, up from its previous estimate of Y140 billion. Its operating revenue, meanwhile, is expected to hit Y1.23 trillion, up from Y1.22 trillion.

"While there are concerns of the impact of the suspended use of 787 aircraft since January, business has been robust, especially on European, North American and Southeast Asian routes," says the carrier.

It adds that various measures including new products and services are also expected to increase its revenue.

Fuel hedging and persistent cost cutting, meanwhile, have been effective and are expected to bring down the carrier's operating expenses by Y8 billion.

All Nippon Airways said on 31 January that flight cancellations associated with the grounding of its 787 fleet will reduce its revenue for the month by Y1.4 billion.