Japan Airlines reports increasing losses

Japan Airlines reports increasing losses

More airline companies are reporting problems due to increasing fuel prices all around the world. And the latest company to have reported losses due to increased spending on aviation fuel is Japan Airlines.

The airline company is already the world’s third largest carrier by sales and they have reported that their losses have tripled in the most recent quarter. They also seem to have suffered drop in passenger numbers due to safety lapses.

Japan Airlines reported that their net losses widened to 11.1 billion yen in the quarter, which ended on December 31. This is a much worse performance compared to losses of 3.7 billion yen a year earlier. Toshiyuki Kawarabata, Japan Air’s general manager of finance said in a statement: “We are feeling the impact of our previous safety trouble”.

The company has lost many customers to the competition especially All Nippon Airways, which has seen sales growth of 7.5 percent, compared to 3.9 percent for Japan Airlines.