Japan Airlines Corp., Asia's largest carrier by sales, cut its full-year operating profit forecast 44 percent as higher fuel surcharges for overseas travel and a slowdown in the global economy reduce demand.
JAL expects operating income of ¥28 billion in the 12 months ending March 31, compared with a previous forecast of ¥50 billion, the Tokyo-based carrier said in a statement Friday. Sales will probably be ¥2.09 trillion, 4.2 percent lower than previously forecast.
The airline follows All Nippon Airways Co., the nation's largest domestic carrier, in reducing its forecast after experiencing the biggest monthly drop in overseas passengers in five years in September. Leisure and business travel is declining globally due to the credit crunch and slowing economies.
"I'm more concerned about Japan Air's finances than All Nippon's," said Yasuhiro Matsumoto, an analyst in Tokyo at Shinsei Securities Co. "JAL is just recovering and starting to make a profit, but this negative impact on demand will really affect its operations."
JAL had a profit last fiscal year after two years of losses totaling ¥64 billion.
The carrier flew 15 percent fewer passengers overseas in September, according to preliminary figures last month — the biggest monthly decline since September 2003, when they tumbled 17.3 percent.