Japan Airlines sees another year of losses, cuts jobs

TOKYO, May 12, 2009 (AFP) - Japan Airlines, Asia's largest carrier, warned Tuesday it expects a second straight year of losses and announced 1,200 job cuts in response to a slump in air travel.

JAL predicted a net loss of 63 billion yen (650 million dollars) for the current business year to March.

The forecast came as JAL announced a net loss of 63.2 billion yen for the last financial year, in line with an estimate released last month. The previous year it made a profit of 16.9 billion yen.

JAL senior vice president Yoshimasa Kanayama said the company expects to slash some 1,200 jobs by March 2010.

"Looking at the economic slump, the company is cutting down costs by reviewing all the divisions," Kanayama said.

JAL said in January it expected to shed 1,640 jobs by March 2011 through reduced hiring and natural attrition as part of efforts to boost efficiency.

The airline has already announced more than 10,000 job cuts since 2005. It has also scrapped unprofitable routes and introduced smaller, fuel-efficient aircraft to cope with high energy costs and sluggish demand.

Source: AFP

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