JAL net profit drops 17.8%

Japan Airlines said Thursday its net profit for the six months to September dropped 17.8% to 81.94 billion yen, on an operating profit of 95.84 billion, down 14.6%.

Sales however edged up 4% to 659.30 billion.

The weaker profits came after its main rival All Nippon Airways issued a grim earnings report, citing high fuel cost and the worldwide grounding of Boeing's Dreamliner earlier this year.

JAL, which returned to the market last year after a spectacular bankruptcy, did not give a specific reason for its weaker earnings.

But it said demand for its international services had been damaged by the Dreamliner's troubles, as well as by a fall-off in demand for routes to South Korea and China.

Tokyo is embroiled in separate territorial spats with both countries.

JAL and ANA were sideswiped by the grounding of Boeing's new aircraft that began in January. After a long-running probe the planes were allowed to fly again in June.

© (c) 2013 AFP