Feb. 2 (Bloomberg) -- Japan Airlines Co., which is planning an initial public offering as early as September, raised its annual profit forecast after reducing loss-making routes and boosting cooperation with American Airlines.
The carrier forecasts net income of 160 billion yen ($2.1 billion) in the year ending March 31, compared with an earlier prediction of 120 billion yen, it said in a statement today.
JAL is introducing more fuel-efficient planes, such as the Boeing Co. 787, after paring overseas service as part of a government-backed restructuring plan. Rival All Nippon Airways Co., Asia’s largest listed carrier by sales, earlier this week boosted its full-year operating income forecast as it steps up cost-cutting measures.
Net income for Tokyo-based JAL was 146 billion yen in the nine months to Dec. 31, according to the statement. Sales were 909.1 billion yen, it said. The airline didn’t provide year- earlier numbers.
JAL’s capacity in international routes declined 21 percent in the nine-month period from a year earlier, while domestic capacity dropped 18 percent, according to the statement.
The carrier’s controlling shareholder, the Enterprise Turnaround Initiative Corp. of Japan, last year hired five Tokyo-based banks to help sell shares to the public by January 2013. JAL, which was delisted from the stock market in 2010, exited bankruptcy protection in March after cutting jobs, retiring aircraft and reducing flights.
--Editors: Garry Smith, Vipin V. Nair
To contact the reporters on this story: Chris Cooper in Tokyo at firstname.lastname@example.org; Kiyotaka Matsuda in Tokyo at email@example.com
To contact the editor responsible for this story: Neil Denslow at firstname.lastname@example.org