Japan Airlines, which just two-and-a-half years ago went bankrupt in one of the country's worst corporate failures, said on August 02 first quarter net profit more than doubled to 26.9 billion yen ($342.75 million). The airline credited cost cutting and improved productivity for the result, which is up from a 12.7 billion yen net profit a year ago, and said sales rose 12.5 percent to 286.7 billion yen.
The revenue boost was helped by a spike in international flights "in response to robust travel demand prompted by the strong yen", it said. While the surging value of the yen has hurt the nation's manufacturers it has had a positive effect on airlines as it also means relatively cheaper travel for Japanese going overseas.
Japan Airlines earlier this year said it had ordered 10 new Boeing 787 Dreamliner aircraft as it looks to build on its recovery and fight off the threat from an emerging budget sector. The announcement, part of a five-year plan, is in addition to an existing order for 35 of the planes.
Built largely with lightweight composite materials, Boeing says the Dreamliner is about 20 percent more fuel efficient than similarly sized aircraft and is the first mid-size airplane capable of flying long-range routes. "JAL took delivery of the revolutionary 787 Dreamliner this past spring, and in April, and used it to launch a new non-stop service between Tokyo and Boston," it said in a statement on August 02.
"The mid-sized Dreamliner was also introduced on several existing international routes to adjust capacity with demand and to improve product appeal," it added.
Sales from domestic operations also improved as the market recovered from slumping demand after last year's quake and tsunami disaster in Japan, it said. The carrier kept its annual forecast unchanged, expecting a net profit of 130 billion yen in the fiscal year through March 2013.
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