• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Aviation

Japan Airlines expects nearly $2.6 billion loss in 2020

5 years ago
in Aviation, highlights, Home, home-news, latest News
2 min read
0 0
0
Japan Airlines - norvanreports

Japan Airlines - norvanreports

92
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Japan Airlines is expecting nearly $2.6bn in losses for the fiscal year 2020. The estimate comes as the airline saw revenue drop over 70% in the first half of 2020, with revenue projections remaining weak through the year.

JAL estimates that domestic demand will reach 80 per cent by March 2021, while international demand will be only be 40 per cent.

JAL 777 Getty
JAL is bracing for a near $2.6bn loss for the fiscal year ending March 2021. Photo: Getty Images
Weak demand

Japan Airline’s forecast comes as demand for flight traffic remains low, including in its usually-bustling domestic market. The first half of the year saw revenues fall 74% year-on-year as Japan became one of the first countries hit by the pandemic.

Domestic demand has picked up since April, where it reached 10%, to roughly 55% now, one bright spot in the forecast. Overall, the airline doesn’t expect domestic demand to return to pre-COVID levels until the end of 2022.

This will surely impact the airline, considering it made more revenue on domestic routes than international last year.

Japan Airlines
Domestic demand has bounced back to nearly 55% as of October. Photo: Getty Images

International demand, by comparison, shows no signs of a recovery. Demand for international traffic fell into the single digits since April and has since yet to recover. JAL estimates that international passenger demand will only reach 40% by March 2021, with a full recovery not projected until 2024, in line with IATA estimates.

Huge losses and raising liquidity

Bleak demand means the airline estimates a loss anywhere between $2.3 and $2.6 billion (¥240bn to ¥270bn) for the fiscal year 2020 (April ’20 to March ’21). International revenue is expected to fall 85%, while domestic revenue will fall by 50%. However, JAL is taking several steps to soften the impact.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

The airline currently has $3.3bn (¥346.6bn) of cash-in-hand. It achieved this at the end of September by raising capital and reducing outflows.

The all-important cash burn figure has fallen to $143 million a month in Q2, down 67% from $429mn in Q1. JAL is also planning to defer aircraft payment and deliveries and cost further costs in the coming months.

japan airlines
JAL is planning to defer aircraft payment and deliveries to preserve capital through this pandemic. Photo: Getty Images

The airline has already reduced its aircraft delivery schedule, taking delivery of only one aircraft since April (an Airbus A350). It’s unclear what the new delivery schedule will be for Japan Airlines, which is the fourth-largest 787 operator in the world.

JAL recently also opted to retire its entire domestic 777 fleet, as demand remains low.

The worst is behind

Despite the year’s difficult figures, Japan Airlines expects a slow recovery in the new few months, along with some interesting developments.

ZIPAIR, JAL’s low-cost 787 subsidiaries, recently flew its inaugural flight, hoping to break into the low-cost market. While the new carrier has a long way to go, it already has plans to challenge full-service carriers on key routes.

ZIPAIR first flight
JAL’s low-cost subsidiary, ZIPAIR, started passenger operations in October. Photo: ZIPAIR

Japan Airlines’ recovery will be dependent on several factors, the two most important being border reopenings and low COVID cases. Japan has recently been signaling that it will allow international tourists from low-risk countries soon, boosting the airline in the near future.

Source: simpleflying
Via: norvanreports
Tags: Airbus A350Covid-19Japan AirlinesZIPAIR
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.