JAL picks up the pieces
Japan Airlines says it has posted a net profit in the three months to June, thanks largely to significant downsizing and cost cutting during its bankruptcy proceedings
JAL completed bankruptcy proceedings in March after recording one of Japan’s biggest-ever corporate failures.
Under government supervision JAL carried out massive job and route cuts in order to continue flying.
JAL said in a statement that it underwent a “rigorous restructuring” last year, including the decommissioning of large aircraft, “which collectively led to a significant reduction in operating expenses”.
The carrier temporarily reduced flights and switched to smaller aircraft in response to the decline in traffic after the earthquake and tsunami that hit northern Japan on March 11 and triggered a nuclear crisis.
Latest figures from PATA indicate that a recovery is underway with the fall in Japan’s outbound travel performance easing to around –2.9% year-on-year for the month of June 2011. 

Ian Jarrett
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