Shares in Japan Airlines slumped 4.29 percent Friday, two days after relisting, as it said it would slash flights to China amid a territorial row between Tokyo and Beijing. The firm finished the day at 3,680 yen, below the 3,790 yen it opened at on the Tokyo Stock Exchange Wednesday as it returned to the bourse less than three years after becoming one of Japan's biggest ever corporate failures.
The close was off an intra-day low of 3,630 yen, reached moments before the final bell. The fall came as JAL, which has undergone a transformation since entering bankruptcy in early 2010, said it would cut the number of flights to China next month to reflect a fall in demand from tourists in both countries.
Tokyo and Beijing have become embroiled in a tussle over a group of East China Sea islands that has led to widespread anti-Japan protests across China and several big-name Japanese firms suspending manufacturing or shutting shops. For an initial 18 days from October 10, the current two daily flights between Tokyo and Beijing will be cut to one, while the three Tokyo-Shanghai flights a day will drop to two.
Two daily flights between western Japan's Osaka and Shanghai will also drop to one in the same period. The company said it was yet to decide what would happen after October 28. JAL said 12,000 seats - 6,000 round trips - had been cancelled for the three months to November.