[R]8:00AM Tokyo, 10:00PM New York - Japan Airlines Corp net income advanced to 13.1 billion yen from a loss of 10.8 billion yen in the third quarter as new profitable routes and cost reductions increased profits[/R]

Quarterly Earnings Review

Japan Airlines Corp. third quarter operating revenues fell 25.8 billion yen or 4.4% to 558.2 billion yen from 584 billion yen from a year earlier as the company absorbed the effects of the Medium-terms Corporate Revenue Plan FY2007-2010 that is meant to return the company to profitability.

Net income advanced to 13.1 billion yen from a loss of 10.8 billion yen in the quarter ended December 31st.

Operating income in the quarter also increased by 39.9 billion yen to 25.9 billion yen from a loss of 14 billion yen in the year-ago period.

Nine Months Earnings Review

Operating revenues in the nine months ended December 31st declined by 32.9 billion to 1.7 trillion yen from 1.73 trillion yen.

Net income in the period was 20.4 billion yen from a loss of 9.3 billion that was realized in the comparative period a year ago.

Operating income also advanced rose to 82.5 billion from a loss of 5.8 billion yen a year earlier.

Revenue

International Passenger Services

Revenues in the international passenger division rose by 4.3% from a year ago to 572.9 billion yen as JAL increased flights on high profit routes in China, India and Vietnam. Unit price rose by 8.3% as fares were hiked and the fuel surcharge was increased.

Revenues per kilometer and passenger on U.S. and Oceania routes slumped, while demand on China, Korea and South East Asia advanced.

The total number of international passengers carried by the airline was similar to the last year total of 10,061,760.

Domestic Passenger Services

Revenues in Japan rose 1% by 5.2 billion yen to 520.1 billion yen as unit prices were increased by 5.6%.

Revenue per kilometer however fell 4.4% on seasonal promotional campaigns and the launch of the business class cabin, while the number of domestic passenger dropped 4.6% to 31,915,821.

Available seat kilometers declined 3.1% during the period from the comparative period last year due to fleet downsizing, review of routes and flight frequency adjustments.

International Cargo Division

Revenues from the cargo division declined by 1.3% to 143.6 billion yen as revenue cargo kilometers fell 2.2%.

In the Japan to North America routes demand declined as the reduction in passenger flights prompted a drop in belly space.