Citing "relentless" decreases in air transport demand, Japan Airlines (JAL) predicts deepening losses for its 2008 fiscal year, ended Mar. 31, while All Nippon Airways (ANA) is using asset sales to stem its red ink. The JAL Group cites the "volatility of the economy" in the last quarter as reason to revise downward its forecast issued Feb. 6, when revenues of ¥1.98 trillion ($20.5 billion) were predicted. It now expects ¥1.95 trillion, compared to ¥2.23 trillion for its fiscal 2007. Outbound leisure traffic picked up due to a strengthening yen and lowered fuel surcharges, but that did not compensate for decreases in inbound business and leisure traffic. Corporate cost-cutting hurt premium travel. JAL moved forward a program to reduce costs that had been set for fiscal 2009, so expenses dropped ¥13 billion and cushioned an overall operating loss that is now expected to be ¥51 billion.
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