Japan Airlines is predicting an annual loss of 34bn yen (US$372m) as the global crisis erodes demand.

International travel, business travel and cargo traffic were worse hit, as it made a 38.5bn yen third quarter loss, down from a November forecast of 13bn yen profit.

The airline said it would continue with a programme of job cuts and fuel-efficient plans, as well as focussing on business customers.

“The deterioration in the economy, stemming from the sub-prime mortgage crisis, resulted in sharp falls in our international passengers,” said JAL senior vice president Yoshimasa Kanayama.

The airline said it had been hit by rising fuel costs in the first half of the year.
JAL said it was expecting a significant slump in sales in the fourth quarter.

“With business confidence falling and demand expected to drop far more than originally expected, the pressure to increase profitability, focus more on cost reduction and increase productivity levels will intensify,” the airline said in a statement.

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