TOKYO: Japan Airlines expects to post a consolidated net loss of between 200 billion yen to 250 billion yen in fiscal 2020, which ends next March, due chiefly to a decrease in international flight passengers amid the novel coronavirus pandemic, it was learned Tuesday.

This will be the first annual net loss for JAL since it was relisted on the Tokyo Stock Exchange in 2012. The major Japanese airline was delisted from the TSE in 2010 following its bankruptcy in the same year.

JAL is set to announce its earnings for the April-September first half of fiscal 2020 on Friday. At the same time, the company will release its earnings estimates for the full year, but the figures will be shown in ranges as uncertainty lingers over passenger demand amid the pandemic, informed sources said.

In April-June, JAL recorded a group net loss of 93.7 billion yen.

The company is seen to have posted a smaller loss in July-September thanks to a recovery in the number of passengers on its domestic flights due to the government-sponsored Go To Travel tourism promotion campaign, which was launched in late July, the sources said.

JAL’s performance is expected to continue improving in October and later, mainly in its domestic services, the sources said, while warning that the number of passengers could fall back depending on the situation over the pandemic.

JAL will hold talks with banks on additional fundraising, such as taking in subordinated loans, part of which can be counted as capital, according to the sources.

JIJI Press