Japan Airlines System Corp. said Friday it incurred a 57.59 billion yen net loss in the first half of fiscal 2003 due to the SARS epidemic and the Iraq war.

For the full year to March 31, the nation's largest carrier now forecasts a wider loss than initially forecast. It now expects a net loss of 65 billion yen.

Comparable earnings figures for the previous first half are not available because JAL was created via a merger of Japan Airlines Co. and Japan Air System Co. in October 2002.