June 15 (Reuters) - Debt-ridden Japan Airlines Corp has told its main lenders it expects more than 1 trillion yen ($10.92 billion) in restructuring costs from huge staff reductions and disposal of aging aircraft, the Nikkei business daily reported.
JAL is expecting a profit of 700 billion yen from debt waivers. The company and the banks must now decide how much of that expense and profit should be booked for when, the daily said.
Although the struggling airline did not compile official consolidated earnings for fiscal 2009, sales dropped 23 percent to 1.49 trillion yen, while operating loss was 146.7 billion yen, the daily said.
The airline will likely suffer a net loss of 1.3 trillion yen if most of its restructuring costs are charged to last fiscal year, Nikkei reported.
For this fiscal year, sales are expected to drop 13 percent to 1.3 trillion yen, but JAL is expecting an operating profit of 25.3 billion yen due to cost cuts, the daily said.
If the restructuring expenses are booked for last fiscal year, JAL could enjoy a net profit of some 70 billion yen even if profits from debt waivers are not factored in, it said.
(Reporting by Arnika Thakur in Bangalore; Editing by Vinu Pilakkott) Keywords: JAPANAIRLINES/COSTS (arnika.thakur@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arnika.thakur.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
JAL is expecting a profit of 700 billion yen from debt waivers. The company and the banks must now decide how much of that expense and profit should be booked for when, the daily said.
Although the struggling airline did not compile official consolidated earnings for fiscal 2009, sales dropped 23 percent to 1.49 trillion yen, while operating loss was 146.7 billion yen, the daily said.
The airline will likely suffer a net loss of 1.3 trillion yen if most of its restructuring costs are charged to last fiscal year, Nikkei reported.
For this fiscal year, sales are expected to drop 13 percent to 1.3 trillion yen, but JAL is expecting an operating profit of 25.3 billion yen due to cost cuts, the daily said.
If the restructuring expenses are booked for last fiscal year, JAL could enjoy a net profit of some 70 billion yen even if profits from debt waivers are not factored in, it said.
(Reporting by Arnika Thakur in Bangalore; Editing by Vinu Pilakkott) Keywords: JAPANAIRLINES/COSTS (arnika.thakur@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arnika.thakur.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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