Japan Airlines announced its first-half results, reporting profit before finance and income taxes of ¥70.2 billion, down 36.0% year on year and expected to exceed its plan by about ¥3 billion. However, the rate of decline is narrowing, prompting a sharp rebound in the stock.
Japan Airlines released its first-half results, reporting profit before finance and income taxes of ¥70.2 billion, down 36.0% year on year. First-quarter profit had fallen sharply by 72.1%, but increases in passenger and cargo revenue provided support, helping results come in about ¥3 billion above plan.
The company left its full-year profit forecast unchanged at ¥180 billion, down 17.4% from the previous fiscal year. Market consensus is estimated at roughly ¥150 billion.
Although the impact of higher fuel costs was a concern, views emerged that increases in passenger and cargo revenue are supporting profit, and expectations are that the rate of decline will continue to narrow.