Japan Airlines says six-month profit soars 29 per cent, ups full-year forecast

Japan Airlines (JAL) said Friday its six-month net profit soared nearly 29 per cent while the carrier boosted its full-year forecasts thanks to a surge in tourism and a steep slide in fuel costs.

The airline’s net profit came in at 103.4 billion yen ($854 million), while it said it expected its full-year profit to be 172 billion yen, up about 20 per cent from its earlier projection.

Half-year revenue rose 0.6 per cent to 687.9 billion yen in the six months to September, JAL said.

Visitor arrivals in Japan have surged as a weak yen puts more purchasing power in the hands of foreign tourists.

“The number of foreign visitors to Japan, which affects our company’s passenger revenue, increased significantly from the previous year,” the airline said.

“Oil prices, which greatly affect our fuel purchasing costs, have been low compared to the year before,” it added.

For the full fiscal year to March 2016, the company upgraded its sales forecast to 1.347 trillion yen from its earlier estimate of 1.328 trillion yen.