TOKYO -- Japan Airlines Corp.'s group operating revenue from international cargo operations rose 2.3 percent in its fiscal first quarter ending June 30 to 45.4 billion yen ($415 million).

Total capacity for international airfreight declined 4.9 percent year-on-year in terms of available cargo ton-kilometers, as a result of network restructuring and aircraft downsizing combined with the retirement of Boeing 747 freighters to cope with the high cost of fuel, JAL said in reporting its financial results on Thursday.

On the demand side, factors such as the slowing of the economy and the strength of the yen against the dollar were instrumental in causing a year-on-year decline in demand on routes to the U.S. and Europe.

On routes to China, on which capacity had been increased, there was robust demand with export and import cargo volumes exceeding year-earlier levels. Demand on routes to Southeast Asia increased year-over-year, in part because of the suspension of operations by competitors, JAL said.

Overall, air cargo transportation in terms of revenue cargo ton-kilometers declined by 6.6 percent year-over-year, JAL said.

Cargo yield rose by 9.6 percent, largely on an April increase in the international cargo fuel surcharge. Revenue also rose, by 2.3 percent to 45.4 billion yen ($414 million). International cargo volume dipped by 2.8 percent, to 179,645 tons.

JAL's consolidated operating revenue from its overall operations, including international and domestic passenger transport, declined by 5.8 percent in the quarter to 490.3 billion yen ($4.5 billion). But JAL group's net loss narrowed to 3.4 billion yen ($31.1 million) in the quarter from 4.2 billion yen ($38.3 million) a year earlier.

Hisane Masaki
Special to The JOURNAL of COMMERCE ONLINE