Aug 12 (Reuters) - Debt-ridden Japan Airlines Corp (JAL) expects assets to exceed liabilities by 24.8 billion yen at fiscal year-end, boosted by strong quarterly results, the Nikkei business daily reported without citing sources.
The positive outlook is part of the proposed revisions to a rehabilitation plan the carrier will submit to the Tokyo District Court by the end of the month, the daily said.
JAL had previously anticipated a negative net worth of 12.2 billion yen, it added.
The Nikkei said the airline sees steady April-June passenger revenue adding 16.8 billion yen to its initial outlook for operating profit and, given its better-than-expected progress in cost-cutting, it expects operating profit swelling to 38.8 billion yen.
JAL intends to use the extra amount to eliminate its negative net worth, the daily added.
The business daily said JAL would remain undercapitalized in the early stages of its reconstruction plan, even if it boasts of more assets than debt.
A future issue will be appropriate to boost capital further, the Nikkei said.
JAL suspended free domestic tickets for employees in April and will abolish a program that provides free and discounted tickets to employees, as a part of its cost cutting initiatives, the Nikkei said.
As of Sept. 1, JAL will end flight discounts and cut-rate international tickets as well, the daily added.
Until last fiscal year, JAL granted employees up to 24 free one-way domestic flights, four round-trip international trips discounted by 90 percent, and half-price domestic and international tickets, based on years of service, the daily added.
The airline will drop the perks altogether, except for some tickets under programs entailing reciprocity with overseas tie-up partners. Retirees' unused tickets through last fiscal year will also no longer be honored, the paper reported.
(Reporting by Koustav Samanta in Bangalore) Keywords: JAL/ (koustav.samanta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: koustav.samanta.reuters.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.
The positive outlook is part of the proposed revisions to a rehabilitation plan the carrier will submit to the Tokyo District Court by the end of the month, the daily said.
JAL had previously anticipated a negative net worth of 12.2 billion yen, it added.
The Nikkei said the airline sees steady April-June passenger revenue adding 16.8 billion yen to its initial outlook for operating profit and, given its better-than-expected progress in cost-cutting, it expects operating profit swelling to 38.8 billion yen.
JAL intends to use the extra amount to eliminate its negative net worth, the daily added.
The business daily said JAL would remain undercapitalized in the early stages of its reconstruction plan, even if it boasts of more assets than debt.
A future issue will be appropriate to boost capital further, the Nikkei said.
JAL suspended free domestic tickets for employees in April and will abolish a program that provides free and discounted tickets to employees, as a part of its cost cutting initiatives, the Nikkei said.
As of Sept. 1, JAL will end flight discounts and cut-rate international tickets as well, the daily added.
Until last fiscal year, JAL granted employees up to 24 free one-way domestic flights, four round-trip international trips discounted by 90 percent, and half-price domestic and international tickets, based on years of service, the daily added.
The airline will drop the perks altogether, except for some tickets under programs entailing reciprocity with overseas tie-up partners. Retirees' unused tickets through last fiscal year will also no longer be honored, the paper reported.
(Reporting by Koustav Samanta in Bangalore) Keywords: JAL/ (koustav.samanta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: koustav.samanta.reuters.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.