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Last Updated: Wednesday, 10 May 2006, 07:07 GMT 08:07 UK
Japan Airlines hit by tough year
Japan Airlines plane
The airline is cutting a number of routes in an attempt to cut costs
Japan Airlines (JAL) has reported a full-year operating loss after being hit by safety issues, a rise in fuel costs and increased competition.

JAL reported a group operating loss of 26.83bn yen ($241.5m; 130m) in the year ended in March, compared with a 56.15bn yen profit a year earlier.

It has struggled to cut costs, and safety problems have hit its image leading customers to defect to rivals.

Last year a JAL flight flew with an engine reverse thruster wrongly set.

JAL has been dropping unprofitable routes and focusing on more lucrative business flights, but this move has been nullified by soaring fuel prices.

The carrier leads Asia's airlines by revenues but is fourth in market value, behind Singapore Airlines, All Nippon Airways and Cathay Pacific.




SEE ALSO:
More fuel woe for Japan Airlines
06 Feb 06 |  Business
Japan Airlines hit by fuel costs
07 Nov 05 |  Business
JAL profits more than halve
15 Nov 01 |  Business


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