Japan Airlines trims losses to Y4.2B

Japan Airlines, one of the world's largest airlines, reported on Monday that it reduced its losses for the first three months of its fiscal year due to lower expenses. In a statement, the airline said its losses amounted to 4.2 billion yen in the April-June 2007 period or a 22.4-percent improvement from the 26.7- billion yen losses it had in the same period in 2006. Its current fiscal year will end on March 31, 2008. Although total operating revenues amounted to 520.6 billion yen, or 0.3-percent lower than revenues in the period last year, JAL reported that its operating expenses were kept at 529.2 billion yen from 554.1 billion yen. "The reduction in total operating costs is a result of steady implementation of cost reforms outlined in the JAL Group medium-term corporate plan. The reforms include route restructuring, fleet downsizing, personnel reductions, fuel consumption measures, and contingency measures such as a decrease in JAL staff's basic wage," the airline said. In May the company announced that it incurred losses amounting to 16.2 billion yen for its 2006-2007 fiscal year from 47.2 billion yen losses in 2005-2006. The losses reflected the failure of the company to net 3 billion yen in bottomline as outlined in its revival plan. - Cheryl Arcibal, GMANews.TV