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JAL aims to expand LCC, mileage services

JAL President Mitsuko Tottori.
JAL President Mitsuko Tottori.
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24 Apr 2024 11:04:52 GMT9
24 Apr 2024 11:04:52 GMT9

TOKYO: Japan Airlines aims to strengthen its low-cost carrier operations and expand mileage services in a bid to improve earnings, JAL President Mitsuko Tottori said Wednesday.

With these efforts, JAL hopes to boost the share of revenues from its nonairline operations to 50 pct of its overall revenues from the current 40 pct, Tottori, 59, said in her first media interview since becoming JAL president April 1.

The major Japanese airline has been seeking to diversify its operations since its aviation business was hit hard by the COVID-19 pandemic.

The company’s earnings have been recovering, partly aided by the normalization of economic activities after the coronavirus crisis.

JAL estimates that it logged 140 billion yen in its earnings before interest and taxes, or EBIT, which shows profits from the core business, in fiscal 2023, which ended in March.

The company aims to increase its EBIT to some 300 billion yen as early as 2030, Tottori said.

While saying that domestic operations were not in a situation in which demand is expected to increase, she said the airline “will firmly maintain our network,” vowing to boost efforts to win more passengers.

Tottori served as a flight attendant for over 30 years before becoming the first woman to take the helm at JAL.

“I want to make JAL a company where young people can take on any challenge,” she said.

JIJI Press

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