Page last updated at 13:40 GMT, Tuesday, 15 September 2009 14:40 UK

Japan Airlines to cut 6,800 jobs

Japan Airlines plane
The airline expects a heavy loss for the year

Japan Airlines (JAL) plans to cut 6,800 jobs, as an airline trade body upped its projected losses for the global industry this year.

"The personnel reduction cannot wait," said JAL president Haruka Nishimatsu.

Mr Nishimatsu said JAL will have a deal in place with an international carrier by the middle of October.

Media reports have said several US and European airlines are in the running to take a stake in the loss-making carrier.

The airline had already launched a programme of job cuts, plans for fuel-efficiency and a focus on business customers.

Reports this week have suggested that Delta Airlines and American Airlines are in talks to invest in JAL to expand into Asia via code-sharing agreements.

On Tuesday, another report said Air France-KLM joined those discussions. Each is discussing an investment of as much as $300m (£181m), the reports said.

Shares in JAL dropped 3.4%, after climbed nearly 8% on Monday.

Iata outlook

Separately, the International Air Transport Association (Iata) increased its forecast for losses across the whole industry to $11bn, from $9bn it predicted earlier this month.

"The outlook for the industry has deteriorated," said Iata director-general Giovanni Bisignani.

Airlines have already lost $6bn in the first half alone, Iata said, with Asian airlines among the hardest hit.

In the Asia-Pacific, airlines will post losses of $3.6bn, up from the previous forecast of $3.3bn.

European carriers are expected to be worst off this year, losing $3.8bn instead of the $1.8bn initially forecast.

Iata estimates losses next year of $3.8bn, and doesn't expect airlines to be in profit again until 2011 at the earliest.

Print Sponsor

Japan Airlines facing annual loss
06 Feb 09 |  Business
Japan Airlines admits cargo fix
17 Apr 08 |  Business
International routes cut JAL loss
06 Aug 07 |  Business
JAL to accelerate staffing cuts
22 Jun 07 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific