Japan Airlines Reports Record Revenue Despite 80 Percent Profit Drop

Japan Airlines reported a net profit drop of 80.2 percent for the April-June quarter, with earnings falling to 5.35 billion yen. The airline attributed the decline to a weak yen and surging aviation fuel prices caused by tensions and war in the Middle East, which increased operating costs by 18.7 percent to 516.8 billion yen.

Despite the profit slump, the company achieved record quarterly sales of 523.74 billion yen, an 11.2 percent increase year-on-year. This growth was driven by flexible pricing and strong demand for international passenger and cargo services. To mitigate rising costs, Japan Airlines has increased fare surcharges since April.

Chief Financial Officer Yuji Saito stated that while business travel and inbound tourism from Europe and the United States remain strong, tourism from China has weakened due to a diplomatic row. The airline maintained its full-year forecast for the fiscal year ending March 2027, projecting 2.1 trillion yen in sales and a net profit of 110 billion yen.