Japanese Airlines See Profits Fall

Above, All Nippon Airways displays Premium Economy seating at the L.A. Travel & Adventure Show. Photo by Armand Vaquer.

The fall of the Japanese yen in foreign exchange has been good for travelers as their home currencies are able to purchase more yen.

On the other side of the coin, Japanese airlines have seen their profits fall due to the fallen yen.

According to Travel Daily Asia:

Japan’s two biggest airlines, JAL and ANA, both experienced a significant fall in profits in the first three quarters of the financial year, as rising fuel costs and a weak Japanese yen impacted results. 

But despite this downturn, the two airlines still produced strong figures. JAL posted a net profit of JPY123.5 billion (US$1.2bn) for the nine months ending 31 December 2013, down 17.1% year-on-year, while ANA’s net profits shrank 36.2% to JPY33.3bn (US$326 million). 

Both airlines posted a significant rise in operating revenues, with JAL’s rising 5.1% to JPY989.9bn and ANA’s increasing 7.1% to JPY1.21 trillion. But this increase of turnover was outpaced by rising operating expenses. JAL’s costs increased 8.7% while ANA’s climbed 11.5%.

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