Increased efficiency lifts airline revenues

JAPAN'S three major airlines posted operating and pre-tax profits for the six months ended September by offsetting sluggish revenues from domestic operations with efficiency gains.

Revenues at Japan Airlines (JAL), which depends mainly on international operations, rose 5.2 per cent after three years of decline.

The number of travellers heading abroad to benefit from the strong yen added 20.4 per cent to international passenger miles in the period.

However, revenues from international flights increased only 12.3 per cent due to increased usage of cheaper economy class.

JAL trimmed personnel costs by 7.7 billion yen (about HK$97.46 billion), lifting operating profits to 18.1 billion yen, from a 8.4 billion loss the year before.

All Nippon Airways (ANA), the second largest airline, posted a 2.6 per cent fall in domestic passenger revenue, while overall passenger revenue dropped 0.7 per cent.