Japan Airlines Co. reported a significant drop in net profit for the first half of its fiscal year, ending September. The company's net profit fell 42.2% from the same period last year to 39.07 billion yen, equivalent to $247 million. This decline was primarily attributed to rising fuel costs, exacerbated by ongoing tensions in the Middle East.
Despite the profit decline, JAL's revenues grew by 11.7% to reach 1.10 trillion yen. The company's international flight operations saw a 16.0% increase in revenue to 426.6 billion yen, while domestic flights brought in 319.7 billion yen, up 5.8%. However, the number of international travelers decreased by 3.1% to 3.86 million, and domestic passengers dropped by 2.2% to 18.70 million.
Looking ahead, JAL has maintained its full-year projection for the fiscal year ending March. The company expects a net profit of 110 billion yen, down 20.1% from the previous year, and revenues of 2.1 trillion yen, up 4.1%. The projections reflect the ongoing challenges faced by the airline industry, particularly in managing rising operational costs.