Japan Airlines Corp., Asia's most indebted carrier, said 180 managers more than expected will take early retirement by the end of next month as the carrier cuts labor costs in its quest to return to profit.
The airline is also seeking voluntary retirement from 900 cabin attendants with 15 years of service and as young as 50 years old by the end of March, according to a statement by the Tokyo-based carrier received by e-mail Friday.
JAL is speeding up plans to cut staff and reduce labor costs by ¥50 billion in the business year ending March 31. It forecasts a return to profit this year after posting losses of ¥64 billion in the two previous years.
"Japan Air is making better progress with their turnaround plan than I originally thought," said Mitsushige Akino, who oversees $468 million in assets in Tokyo at Ichiyoshi Investment Management Co. "If they keep up this pace of reform, I may consider buying the stock." Akino doesn't own the stock currently, he said.
The airline said 630 managers will retire by November, more than its target of 450, spokesman Stephen Pearlman said.