Japan Airlines expects annual net loss weighed down by Omicron


Tokyo (awp/afp) – Japan Airlines on Friday lowered its earnings forecast for its 2021/22 fiscal year, which ended in late March, expecting an even more severe net loss from the Omicron variant which significantly reduced its passenger traffic in Japan .

Japan’s second largest airline now expects an annual net loss of 177 billion yen (1.3 billion euros), against a previous forecast of -146 billion yen, according to a press release.

JAL also expects a negative operating result (Ebit) of 239 billion yen, against a loss of 198 billion yen expected so far.

Finally, its annual sales should total 682 billion yen (5 billion euros, +41.7% over one year), against a previous forecast of 766 billion yen.

Its fourth quarter (from January to the end of March 2022) was weighed down by the return of restrictions in many Japanese departments due to the spread of the Omicron variant, “which significantly lowered demand for domestic traffic” from its passenger activity , explained JAL in its press release.

And its international passenger traffic did not improve much over the period, despite the lifting of certain restrictions at Japan’s borders.

The impact of the surge in oil prices in March against the backdrop of the war in Ukraine was generally offset by financial fuel hedging instruments, JAL said.

The group, which had already fallen deep into the red in 2020/21 due to the pandemic, is due to publish its annual results on May 6.

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