Japan Airlines plunges into loss

The airline is seeking another government bailout

Japan Airlines has reported a group net loss of 32.3bn yen ($357m; £214m) for the July to September period.

In the same period a year ago, the airline made a 40.1bn yen profit. It gave no forecasts for full-year results because of its uncertain outlook.

The carrier is urgently seeking a financial bailout from the government - its fourth since 2001.

It is struggling with $15bn of debts and a big pension deficit as well as falling passenger numbers.

'Worst results'

Executive offer Yoshimasa Kanayama said: "Since the sub-prime crisis emerged, our business has been affected by drops in the number of business passengers as well as the emergence of the new type of influenza".

He added that these were their "worst earnings results ever" and that trading in the second half of the year was expected to remain "severe".

There have been reports that the airline's president, Haruka Nishimatsu, may step down once the turnaround plan has been completed.

Tie-up talks

Mr Nishimatsu said management changes would only be announced once the turnaround plan was in place.

"I feel a lot of responsibility that it has come to this," said Mr Nishimatsu. "But currently there are things to be done and we need to set up and put in place a restructuring plan as quickly as possible."

The airline is reportedly in talks with both American Airlines and Delta Air Lines to sell a minority stake. Press reports suggest a deal will be done by the end of the year.