Andrzej Jeziorski/SINGAPORE
Japan's "Big Three" carriers have reported major increases in operating profits for the six months to 30 September - their first half-year reporting period since the deregulation of the country's domestic airline market in February. The smallest of the three, Japan Air System (JAS), nevertheless saw its net figure drop due to restructuring costs.
Price deregulation generally stimulated domestic travel but, with the Japanese economy producing only moderate growth, the three avoided a fare war of the sort waged against newcomers Skymark and Air Do last year. The trio have even embraced a degree of co-operation, launching a joint Tokyo-Osaka shuttle service to compete with the rail alternative.
JAL's sales rose 7.7% to ¥645.54 billion ($5.94 billion), with international passenger revenue up 8.7% to ¥334.3 billion as tourist traffic to China and South-East Asia boomed. But JAL's operating expenses rose only 3.4% to ¥588.87 billion as it kept costs in check, despite a 26% rise in fuel costs. Fare hikes helped to rescue yields.
Company-level operating profits rose 88% to ¥56.66 billion, the second highest figure in JAL's history. Net profits increased five-fold to ¥38.49 billion. Domestic traffic dropped 1% with the introduction of smaller aircraft on some routes, but domestic yield was up 8% and domestic revenue up 4.6% to ¥149.2 billion.
ANA company-level sales rose 5.8% to ¥496.2 billion, operating profits by 133% to ¥50.9 billion and net profits 146% to ¥10 billion. Operating costs increased to ¥356.6 billion, but sales, general and administrative costs were cut by ¥3.8 billion to ¥88.8 billion. JAS' six month sales increased 5% to ¥184.32 and its operating profits rose 60% to ¥12.36 billion, but net profits almost halved to ¥2.25 billion after a ¥3.44 billion extraordinary loss due to restructuring as the carrier cut its workforce.
All three reported increased cargo demand, especially between Asia and North America.
Source: Flight International
