JAL to expand flights to Asia and Europe
JAL to expand flights to Asia and Europe
TOKYO (AFP): Japan Airlines Co. Ltd. (JAL) said yesterday it planned to increase the number of flights to Southeast Asia, Europe and Hawaii as well as a couple of domestic routes in the new year starting in April.
JAL also said it expected net earnings to remain flat next year, projecting that profits after tax would only "break even" for the second year in a row.
Under its latest plans for Asia, the airline will launch a new twice-weekly service between Nagoya and Manila in April and boost the number of weekly flights between Osaka and Hong Kong from 11 to 14 in November.
JAL said it was also considering plans to increase the number of flights between Osaka and Ho Chi Minh City from two to three a week. On the Tokyo-Seoul route, however, the number of weekly flights will be cut from eight to seven.
In Europe, the number of weekly flights is to rise from five to seven on the Tokyo-Amsterdam route, from three to four on the Tokyo-Milan-Rome route and, starting in November, from four to five on the Osaka-London route.
JAL also plans to boost the number of weekly flights from five to seven on both of its services to Honolulu from Fukuoka and Sapporo. The airline added that new domestic routes would include Kansai to Kagoshima and Oita while frequencies on existing services in Japan would be also increased.
The objective for the new year starting in April is for operating profits to return to the black after an expected loss of 15 billion yen (US$150 million) in the year to March and for net earnings to break even.
"JAL expects market conditions to be fiercely competitive following a marked swing to lower fares in the Japanese international travel market and increased foreign competition following the opening of Kansai International Airport," a statement said.
The airline also expects to break even after tax this year after three years of net losses. In addition, JAL expects to reach its revenue target of 1,020 billion yen for the current year, up from 982 billion yen last year.
JAL also plans to increase its fleet by nine aircraft with the introduction of eight new aircraft, the leasing of another two through a subsidiary and the retiring of one Boeing 747-400.