Japan Airlines Corp., reeling from its biggest loss in five years, must cut more costs to receive emergency funding from the government, the head of the ruling Liberal Democratic Party's aviation association has said.

The airline needs to consider more job cuts and reduce costs by more than the ¥50 billion it aims to slash this business year, Seiichi Ota, chairman of the association of LDP lawmakers on aviation issues, said in an interview Friday in Tokyo.

JAL, which has applied for a ¥200 billion loan from the Development Bank of Japan, is offering unpaid leave and eliminating jobs to slash costs after reporting its biggest drop in international travel since 2003. All Nippon Airways Co., the nation's second-largest carrier, announced last week it will cut ¥73 billion in costs this year.

"Japan Air should cut more costs than All Nippon as it's a bigger company," Ota said. "A reduction in costs will be a condition of financial aid and will affect the amount it gets."

JAL had a net loss of ¥63 billion in the year ended March 31 compared with a previous forecast of a ¥34 billion loss, it said in a preliminary earnings statement last month. JAL will announce its earnings forecasts for this business year Tuesday along with its business plan.