Japan Airlines Posts Profits After 3 Years

Tokyo, Japan (AHN) - Cost-cutting and operations streamlining becomes Japan Airlines Corp., who on Friday reported first quarter earnings which were more than double its initial net profit forecast.

Bloomberg reported that JAL's first quarter income totaled $153 million (16 billion yen) against a previous forecast of 7 billion yen, noting that this is the first time in three years that the airline is posting profits.

The company, in its preliminary earnings statement, attributed the gains to the companywide cost controls it implemented to help keep the airline's head above water amid the fuel crisis.

JAL cut corners by ordering 35 of the more fuel efficient Boeing Co. 787, while a total of 1,200 people availed of the airline's early retirement offer - including 320 cabin attendants and 880 managers.

At the same time, the airline said an increase in the number of international passengers has prompted it to raise operating profits projections to $859.8 million (90 billion yen) from the initial forecast of $458.6 million (48 billion yen) announced in November, a Forbes report said.

JAL also made $401.3 million (42 billion yen) in extraordinary profit for the 2008 fiscal year from selling its 49 percent stake in its stake in its JAL Card unit in July.

On the downside, the airline has earmarked $58.3 million (6.1 billion yen) for payment of a possible European Union fine concerning its cargo operations.