Japan Airlines Posts Loss, Pulls Dividend as Virus Hits Travel

(Bloomberg) -- Japan Airlines Co. posted its first quarterly operating loss in at least eight years and suspended its annual dividend as the coronavirus outbreak hits the travel industry.

Fourth-quarter operating loss was 19.5 billion yen ($183 million), the first deficit since the company re-listed on the stock exchange in 2012. Sales fell 21% to 280 billion yen, JAL said Thursday. The company didn’t give full-year forecasts, saying there’s no sign that the pandemic is coming under control globally and its impact is hard to predict.

The outbreak has upended operations at JAL and its peers, even as Japan has so far avoided a surge in infections and has the lowest infection rate among the Group of Seven countries. For the current Golden Week holidays in Japan, international flight reservations fell 98% while those for domestic flights slumped 93%, according to government data.

The industry could lose $314 billion in revenue this year, according to the International Air Transport Association.

JAL said it plans to bring forward its plan to raise 58 billion yen. It is also seeking aid such as reduced airport fees to deal with the slump, and the government said it would consider loan measures for the industry. JAL executives plan take 10% pay cut from April to June, according to Nikkei.

The carrier is also limiting seat sales through June for social-distancing purposes.

Earlier this week, rival ANA Holdings Inc. reported a quarterly operating loss of 59 billion yen and scrapped its annual dividend for the just-ended year.

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