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Sat, Dec 27, 2008 - Page 10 News List

JAL mulls revising spending program as travel slows

BLOOMBERG

Japan Airlines Corp (JAL), Asia’s biggest carrier by sales, said it may cut its capital investment plan as it takes delivery of fewer planes and travel demand slows.

The company will spend ¥100 billion (US$1.1 billion) less than its original plan of ¥419 billion for the three-year period from April 1 this year, spokesman Soichi Yatsugi said, confirming president Haruka Nishimatsu’s comments published in the Yomiuri Shimbun yesterday

JAL follows domestic rival All Nippon Airways Co in cutting investment to reflect falling passenger traffic caused by the global recession. International premium air travel, carriers’ most profitable fares, fell 6.9 percent in October, the fifth straight monthly slide, Geneva-based International Air Transport Association said last Friday.

JAL will introduce fewer new planes into its fleet as a result of the revised spending plan and its operating profit forecast of ¥96 billion for the three-year period remains unchanged, Yatsugi said. On Nov. 7, JAL cut its full-year operating profit forecast 44 percent to ¥28 billion for the year ending in March because of declining sales and fuel costs.

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