Covid hits airlines as Japan Airlines nets biggest loss since 2012
JAPAN Airlines announced its biggest quarterly loss since 2012 and decided to stop paying an interim dividend due to the Covid pandemic, reports Bloomberg News
JAPAN Airlines announced its biggest quarterly loss since 2012 and decided to stop paying an interim dividend due to the Covid pandemic, reports Bloomberg News.
The company's quarterly loss was US$890 million, which is the most since the company relisted on the Tokyo stock exchange in 2012 after previously claiming bankruptcy. Since 2012, it has posted one other quarterly loss in this year's first quarter.
The Covid pandemic continues to devastate airlines, as companies in the industry are forced into cutbacks. The International Air Transport Association (IATA) doesn't expect a recovery in the industry until at least 2024.
Although the Japanese government hasn't forced a lockdown yet, cases have recently begun to surge in the country. Meanwhile, Japan Airlines' loss was worse than the $890 million average forecasts of two analysts.
The company warned it would take time for international demand to recover, and a pickup in domestic demand has stalled due to the recent surge in cases.
The airline which said it has an unused $17 million credit line, saw sales drop 78 per cent to $720 million in the quarter.