Japan Air System reported 1.5 billion yen in pretax losses on sales of 325.5 billion yen for the business year that ended in March, due to a drop in per-passenger fares forced by intensifying competition, officials of the nation's third-largest airline said Monday.
Although the number of passengers increased 4.5 percent from the previous year, sales rose by only 2.1 percent and the average fare per head for domestic services declined about 3 percent, which cost the carrier 10.5 billion yen in revenues, the officials said.
The poor results were particularly conspicuous in the last April-June quarter because demand shrank after the consumption tax hike in April 1997, and in the January-March quarter due to the weakening economy.
The carrier will further restructure its network by increasing flights on trunk routes through Tokyo's Haneda airport and decreasing flights on unprofitable routes linking local cities. It will also proceed with cost-cutting efforts, the officials said.